Stocks rallied sharply on Wednesday as a steep drop in crude oil prices and mounting excitement ahead of Nvidia’s after-the-bell earnings report drew buyers back into the market. All three major indexes posted their strongest session in weeks, snapping a three-day losing streak that had been driven by surging Treasury yields. The mood shifted decisively as oil fell more than 5% on hopes for a diplomatic breakthrough in the Middle East, easing one of the market’s most persistent headwinds.
What Moved Markets
The Dow Jones Industrial Average surged 645.47 points, or 1.31%, to close at 50,009.35, reclaiming the psychologically important 50,000 level. The S&P 500 gained 79.36 points, or 1.08%, finishing at 7,432.97. The Nasdaq Composite led the way with a 1.54% advance, closing at approximately 26,269, as chip stocks and other technology names bounced back from Tuesday’s sharp selloff.
The biggest catalyst was a dramatic slide in oil prices. WTI crude futures fell more than 5% to below $100 per barrel after President Trump indicated the U.S. was in the final stages of negotiations with Iran, raising the prospect that naval blockades choking off tanker traffic through the Strait of Hormuz could soon be lifted. Satellite imagery showing three supertankers crossing the strait added to the optimism. Lower energy costs would be a welcome development for an economy still grappling with elevated inflation, and the prospect of relief helped ease the bond market anxiety that had hammered stocks earlier in the week.
Separately, the Federal Reserve released minutes from its April 28-29 meeting, confirming that policymakers held the federal funds rate steady at 3.50%-3.75%. The minutes noted that inflation remains elevated, partly reflecting higher global energy prices, and that Middle East developments are contributing to significant uncertainty. The release carried added weight as it represents the last set of minutes under the previous leadership structure before new Fed Chair Kevin Warsh takes the helm at the June meeting.
Notable Movers
TJX Companies (TJX) jumped 5.5% after the off-price retailer reported first-quarter results that topped expectations and raised its full-year guidance. Analysts responded by maintaining or upgrading ratings and raising price targets, reinforcing the view that value-oriented retailers are well positioned in the current consumer environment.
Arm Holdings (ARM) rallied nearly 4% as enthusiasm for AI chip names returned following Tuesday’s brutal selloff. The stock, already up more than 80% in 2026, got an additional lift from a Bernstein analyst initiation with an Outperform rating and a $300 price target, citing the company’s growing role in AI data center silicon.
Lowe’s (LOW) slipped 2.1% to $213.80 despite beating earnings estimates with first-quarter EPS of $3.03 on revenue of $23.1 billion, up 10.4% year-over-year. Investors were disappointed by cautious full-year guidance from the home improvement chain, particularly given the mixed signals on housing activity.
Nvidia (NVDA) edged higher during the regular session as traders positioned ahead of the company’s after-hours earnings release. As the world’s most valuable company, Nvidia’s results are widely viewed as a barometer for the entire AI industry.
Looking Ahead
The immediate focus shifts to Nvidia’s first-quarter report, due out shortly after the close. Analysts are expecting revenue around $79 billion, and any surprise — particularly in the guidance — could set the tone for the rest of the week. Beyond Nvidia, investors will be watching developments in the Middle East closely; a formal agreement on the Strait of Hormuz would represent a meaningful shift in the inflation outlook and could provide further relief for both bond and equity markets. FOMC minutes confirmed the Fed is in wait-and-see mode, which means incoming data on inflation and employment will carry outsized weight in the weeks ahead.