Market Report, 2026-05-21

The market witnessed another roller-coaster ride today. Iran continued to remain the focus of investors. While the day started with skepticism about whether there had been actual progress in geopolitical negotiations due to discussions between Iran and Oman regarding the establishment of some form of a permanent toll system in the Strait of Hormuz, an Iranian media report stating that the U.S. proposal “has narrowed the gaps to some extent” helped relieve investor concerns.

Stocks ended the day higher. The Dow Jones Industrial Average finally reached its highest close since February, at 50,286. The NASDAQ rose 0.2% to 29,354.7, while the S&P 500 ended the day 0.17% higher at 7,446. AI and AI-adjacent sectors were the day’s biggest winners, with chipmakers and electricity-related companies soaring. The market rotated out of consumer staples and energy stocks.

The bond market flattened as investors anticipated lower chances of higher long-term inflation. The 5-year U.S. Treasury yield rose 2 basis points to 4.24%, the 10-year yield remained unchanged at 4.57%, and the 30-year yield declined 2 basis points to 5.1%. Gold held steady.

Today’s jobless claims continued to indicate a stable labor market. Housing-related statistics showed a stronger supply pipeline than economists had expected. Preliminary industry surveys showed expansion in both the services and manufacturing sectors.

Of course, we also have to look at earnings from Nvidia, one of the stock market’s darlings in recent years. Nvidia continued to demonstrate significant acceleration in profit growth with astonishing margins. However, because the market had already priced in these expectations, the results did not lift the stock price today.

Tomorrow, we will receive the finalized consumer sentiment report and U.S. leading economic indicators. Adams Wealth Advisors will keep you informed.