Stan ChoeUpdated May 21, 2026 — 6:52am,first published 5:12amThe US stock market bounced back after pressure eased on Wall Street from the bond market and oil prices gave back some of their big gains.The S&P 500 climbed 1.1 per cent for its first rise in four days and pulled closer to its all-time high set last week. The Dow Jones added 645 points, or 1.3 per cent, and the Nasdaq composite rallied 1.5 per cent.Wall Street bounced back on Wednesday, ending its three-day losing streak. APThe Australian sharemarket is set to jump, with futures at 4.55am AEST pointing to a gain of 116 points, or 1.4 per cent, at the open. The ASX slumped by 1.3 per cent on Wednesday. The Australian dollar was trading at US71.61¢.Nvidia, the world’s most valuable company, disappointed investors with its latest sales forecast, adding to concerns about growing competition in the AI chip industry.Revenue in the three months ending in July will be $US91 billion, the company said in a statement. Though analysts estimated $US87 billion on average, projections ranged as high as $US96 billion, according to data compiled by Bloomberg.The outlook disappointed investors who have grown accustomed to Nvidia shattering expectations. The company also is facing the first major challenges to its dominance in AI computing, with a variety of chipmakers trying to carve out a piece of the business. Nvidia shares fell about 0.5 per cent in after-hours trading after the results were released.Stocks got a lift from easing yields in the bond market, which offered relief following rapid climbs that had rattled stock markets worldwide recently. The yield on the 10-year Treasury fell to 4.57 per cent from 4.67 per cent late Tuesday, which is a significant move for a market that measures things in hundredths of a percentage point.The 10-year Treasury yield had been rising from less than 4 per cent before the war with Iran began, along with other yields around the world, because of worries that the fighting will keep oil prices high, among other factors. The inflation concerns not only seemed to eliminate the chances for a cut to interest rates by the Federal Reserve this year, they also heightened the risk that central banks may have to raise rates in 2026.High yields slow economies and weigh on prices for stocks, cryptocurrencies and all kinds of other investments. Besides driving up rates for mortgages, they could also curtail companies’ borrowing to build the artificial-intelligence data centres that have been supporting the US economy’s growth recently.Yields eased Wednesday as oil prices pulled back some more. The price for a barrel of Brent crude fell 5.6 per cent to settle at $US105.02, though it remains well above its roughly $US70 level from before the war. Prices have been yo-yoing on rising and falling hopes that the United States and Iran can reach an agreement to allow oil deliveries to fully resume from the Persian Gulf to customers worldwide.A report showing less bad inflation in the United Kingdom than economists expected also helped calm yields worldwide.With the easing of yields, technology stocks helped lead Wall Street higher.Advanced Micro Devices jumped 8.1 per cent and Intel 7.4 per cent while Nvidia added 1.3 per cent ahead of its results.Smaller companies can feel even bigger relief from lower yields than their bigger rivals because many need to borrow to grow. The Russell 2000 index of the smallest US stocks jumped 2.6 per cent, more than double the gain of the S&P 500, which measures the biggest US stocks.Also helping to drive the market was the company behind TJ Maxx, Marshalls and other stores, which climbed 5.7 per cent after delivering stronger profit and revenue for the latest quarter than analysts expected. TJX’s CEO, Ernie Herrman, said the current quarter is off to a good start, and the off-price retailer raised its forecasts for revenue and profit this year.Red Robin Gourmet Burgers jumped 18.2 per cent, and Cava Group rose 3.1 per cent following their own better-than-expected profit reports. Such results raise hopes that households can keep spending and supporting the economy, even though they’re contending with high gasoline prices and widespread discouragement about economic conditions.Most big US companies have likewise reported better profits for the start of 2026 than analysts expected, which has helped stocks run to records. Stock prices tend to follow the path of corporate profits over the long term.On the losing side of Wall Street was Target, which fell 3.9 per cent even though the retailer reported better profit and revenue for the latest quarter than analysts expected. A new CEO, Michael Fiddelke, is trying to turn around the company and boost its revenue.Expectations were high for the company’s performance after Target’s stock came into the day with a gain of more than 30 per cent for the year so far, quadruple the S&P 500’s gain.All told, the S&P 500 rose 79.36 points to 7,432.97. The Dow Jones Industrial Averae jumped 645.47 to 50,009.35, and the Nasdaq composite rallied 399.65 to 26,270.36.In stock markets abroad, indexes climbed in Europe following weaker finishes across Asia.Tokyo’s Nikkei 225 fell 1.2 per cent as the yield on the 10-year Japanese government bond slipped but remained near its highest level since 1997.From our partners