NEW YORK, May 20, 2026, 11:02 (EDT)
Chip stocks pulled U.S. indexes higher early Wednesday ahead of Nvidia’s report after the close, while easing oil and bond moves helped sentiment. The S&P 500 was up 0.18% at 7,366.51, the Nasdaq Composite climbed 0.45% to 25,988.36 and the Dow Jones Industrial Average added 0.42% to 49,573.21, LSEG data showed, as reported by Reuters.
Investors are looking to extend the AI trade, even as the bond market resists. The 10-year Treasury yield dropped 0.034 point to 4.635% Wednesday, pulling back after a recent jump, according to Reuters data.
Nvidia was up 0.7% in the first trades. “The bar continues to rise for some of these companies,” James McCann, senior economist at Edward Jones, told Reuters. He said it will be important for investors to see if Nvidia keeps clearing that bar. Reuters
Nvidia’s chip rivals moved higher as traders looked for a wider move in semis, not just a reaction to one set of earnings. Marvell Technology jumped 7.8%. Intel was up 6.3%. Micron Technology tacked on 3.6%. The Philadelphia SE Semiconductor index added 2.9%.
Options markets were putting the odds of a 6.5% move for Nvidia after earnings at about $350 billion of market value, Reuters’ Mike Dolan wrote. That’s bigger than most S&P 500 companies combined.
Nvidia is on track for a 79% gain in April-quarter revenue, which would be its fastest growth in over a year, LSEG data cited by Reuters showed. Chaim Siegel, an analyst with Elazar Advisors, pointed out a key hurdle. Customers want more GPUs, but “don’t really have the data centers to put them into,” he said. Reuters
Oil gave some lift to the early session, at least for now. Brent crude slipped 4.31% to $106.48, Reuters market data showed, with traders reacting to new comments on the Iran conflict. LSEG research analyst Emril Jamil said prices might still rise if supply does not recover soon after a deal.
Rates aren’t easing up. U.S. stocks ended lower Tuesday with the 10-year Treasury yield jumping to 4.687%, a level not seen since January 2025, as odds of a 25-basis-point Fed rate hike in December reached 41.7%. One basis point equals one hundredth of a percent.
Reuters reported a poll showing most economists remain cautious: 83 of 101 surveyed between May 14-19 expect the Fed to keep its main rate at 3.50%-3.75% through the third quarter. Aditya Bhave, Bank of America’s U.S. economics head, said “both hikes and cuts are feasible,” but he sees a rate cut as more likely next year than this year. Reuters
TJX shares climbed after the retailer raised its full-year sales and profit outlooks. Emarketer’s Suzy Davidkhanian said HomeGoods’ gains suggest shoppers step up when “the value feels right.” But Target dropped, even as it raised its sales-growth target for the year. CEO Michael Fiddelke told investors: “we will not confuse this progress with potential.” Reuters Reuters
Lowe’s shares dropped after the retailer stuck with its full-year outlook and called out ongoing weakness in the U.S. housing market. CEO Marvin Ellison said the retailer saw good results in Pro, Appliances, Online and Home Services thanks to solid execution this spring, but Wall Street was unmoved as demand for bigger DIY projects stayed tough.
Software lagged again. Shares of Intuit dropped after Reuters reported the TurboTax maker plans to cut around 17% of jobs, or about 3,000 positions. CEO Sasan Goodarzi is shifting to streamline operations and focus more on artificial intelligence.
Relief moves in the morning can disappear if Nvidia’s outlook falls short, oil prices climb, or Fed minutes due Wednesday suggest less support for rate cuts. Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions, told Reuters it’s not only about the level of rates but “the rate of change,” saying quick moves tend to unsettle markets. Reuters
