Stock market today: Dow jumps 600 points, S&P 500, Nasdaq rally as oil prices fall, bond sell-off eases

May 20, 2026 - 18:56

U.S. stocks staged a powerful rebound on Tuesday, with the Dow Jones Industrial Average vaulting more than 600 points as falling oil prices and a pause in the bond market sell-off breathed fresh life into a rattled market. The S&P 500 and the Nasdaq Composite also joined the rally, recovering some of the ground lost in recent weeks.

The catalyst for the broad advance was a sharp decline in crude oil prices, which eased fears that rising energy costs would reignite inflation and force the Federal Reserve to keep interest rates higher for longer. West Texas Intermediate crude slid more than 4%, giving a lift to sectors that had been squeezed by high fuel costs, including airlines and transportation stocks.

At the same time, the bond market showed signs of stabilizing. The yield on the benchmark 10-year Treasury note, which had climbed to multi-year highs earlier in the session, pulled back as investors stepped in to buy. That shift helped growth-oriented technology stocks, which are particularly sensitive to rising borrowing costs.

Despite the strong day, traders are not declaring victory just yet. All eyes are now turning to Nvidia, which is set to report earnings after the bell on Wednesday. The chipmaker has become the bellwether for the artificial intelligence trade, and its results could determine whether the recent AI-fueled rally has more room to run or if it is running out of steam. A disappointing report from Nvidia could quickly reverse Tuesday's gains, while a strong beat might reignite the broader market's momentum.

The rally was broad, with all 11 S&P 500 sectors finishing in positive territory. Energy was the only laggard, dragged down by the drop in oil prices, while consumer discretionary and technology stocks led the charge. For now, investors are taking the reprieve, but the real test comes tomorrow.