Nasdaq gains 0.6% as yields ease

U.S. stocks rose on May 20 as Treasury yields pulled back and oil prices dropped, giving investors a break after a bond-market selloff had pressured equities earlier in the week. The Nasdaq Composite climbed 1.54% to 26,270.36, while the S&P 500 gained 1.08% to 7,432.97 and the Dow Jones Industrial Average added 645.47 points to 50,009.35, according to CNBC. West Texas Intermediate crude settled down 5.66% at $98.26 a barrel, and Brent crude fell 5.63% to $105.02. ### Why did lower Treasury yields matter so much to stocks? The 30-year Treasury yield fell more than 6 basis points on May 20 to 5.116%, after briefly reaching 5.197% on May 19, its highest level since July 2007, CNBC reported. The 10-year Treasury yield dropped more than 9 basis points to 4.576%, easing pressure on borrowing costs tied to mortgages, auto loans and credit cards. (cnbc.com) Higher yields had become a central market concern because they raise the discount rate investors use to value future earnings, a dynamic that tends to weigh more heavily on growth stocks and technology shares. CBS News said the 10-year yield had climbed to 4.69% earlier in the week, the highest since January 2025. (cnbc.com) ### What changed between the bond selloff and Wednesday’s rebound? Oil prices fell sharply on May 20 as traders grew more optimistic that tensions in the Middle East could ease, according to CNBC. That decline helped reduce immediate inflation fears that had been feeding the jump in long-dated Treasury yields. The Associated Press reported before the open that Nasdaq futures were up 0.7%, S&P 500 futures rose 0.4% and Dow futures edged up 0.2% as yields and oil both moved lower. (cnbc.com) The 10-year Treasury yield had eased overnight to 4.64% from 4.66% late on May 19, AP said. ### Which parts of the market benefited most from the move? (cnbc.com) Technology shares led the rebound on May 20, with investors also positioning ahead of Nvidia’s quarterly report after the closing bell. CNBC said traders were looking both to Nvidia’s earnings and to minutes from the Federal Reserve’s latest meeting. Investrade said chip stocks bounced after recent weakness and that the Philadelphia Semiconductor Index rose about 4.5% during the session. (accesswdun.com) The same note said small-cap stocks and housing-related names also gained as yields retreated from a six-week run-up. ### Why did some early reports describe a smaller Nasdaq gain? The Times of India reported during trading on May 20 that the Nasdaq Composite was up about 0.6%, the Dow was down about 62 points and the 10-year Treasury yield had slipped to 4.64%. (cnbc.com) Those figures reflected an earlier snapshot of the session, before stocks strengthened into the close. (investrade.com) By the end of the session, the rebound was broader and stronger than that intraday reading suggested. CNBC’s closing figures showed all three major indexes finished higher, with the Nasdaq posting the biggest percentage gain of the group. ### What comes next for investors watching this trade? Nvidia reported results after the May 20 close, and its numbers were set to test whether the AI-driven rally in large technology stocks could extend. (timesofindia.indiatimes.com) Reuters said Nvidia posted first-quarter revenue of $81.62 billion and that profit tripled, while CEO Jensen Huang projected further revenue growth. (cnbc.com) The next market steps are likely to center on Treasury yields, oil prices and the reaction to Nvidia’s results on May 21. Federal Reserve minutes released on May 20 also remain part of the backdrop as investors gauge whether the bond-market pullback can hold. (cnbc.com) (thestreet.com)