S&P 500 Stabilizes as FOMC Minutes Ease Rate-Hike Fears

Markets recovered on May 20-21 as the 10-year Treasury yield eased to 4.645% and WTI crude fell over 2%, trimming inflation concerns. The rebound followed a volatile period triggered by hotter-than-expected April CPI of 3.8% YoY on May 11-12 and a 1.4% monthly PPI surge that drove the 10-year yield to a 16-month high near 4.69% and the 30-year briefly above 5.18%. Sharp equity declines on May 15 and renewed pressure on May 19, led by semiconductors amid Iran-related oil spikes above $107, gave way to stabilization as geopolitical tensions eased and Nvidia earnings supported the AI trade. FOMC minutes on May 21 further calmed investors, lowering odds of near-term Fed tightening.