Market Analysis Summary - May 21, 2026

Author: Vladimir Zernov

Published: May 21, 2026, 19:27 GMT+00:00

Key Market Movements

• SP500 moved higher as traders reacted to economic reports and geopolitical news.
• NASDAQ fluctuated between gains and losses, influenced by NVIDIA's earnings report.
• Dow Jones gained ground despite a significant sell-off in Walmart stock.

SP500 Performance

The SP500 index gained traction as traders focused on a pullback in oil markets and reacted positively to economic data. Reports indicated that U.S. and Iran were moving towards a potential deal, which initially pressured oil prices. However, oil prices rebounded after news that Pakistani mediators would not visit Tehran.

The ongoing nuclear negotiations remain a significant hurdle, with Iran wanting to retain its uranium stockpile while the U.S. demands its surrender. Additionally, discussions between Iran and Oman regarding a toll system in the Strait of Hormuz were highlighted, with President Trump asserting the waterway's status as international.

Economic Indicators

Traders also focused on the latest PMI data:

• Manufacturing PMI rose from 54.5 in April to 55.3 in May, surpassing the forecast of 53.8.
• Services PMI slightly declined from 51.0 to 50.9, against expectations of remaining unchanged.

Initial Jobless Claims showed 209,000 Americans filed for unemployment benefits, slightly below the consensus of 210,000. Housing Starts fell by 2.8% month-over-month in April, better than the expected decline of 3.5%, while Building Permits increased by 5.8%, exceeding the forecast of 0.5%.

Sector Performance

Most market sectors experienced gains, particularly basic materials stocks, which benefited from rising silver prices. Conversely, energy stocks faced pressure due to the pullback in oil prices.

The SP500 is attempting to settle above the resistance level of 7425 – 7435, which has been tested multiple times. A successful settlement above this level could lead to a move towards the next resistance at 7515 – 7525.

NASDAQ Analysis

The NASDAQ index rebounded from session lows, influenced by the pullback in oil markets and NVIDIA's earnings report. Despite a better-than-expected earnings report, NVIDIA's stock fell by 1.7% as traders took profits near historic highs. The NASDAQ is trying to settle above the resistance level of 29,200 – 29,250, with potential upward movement towards 29,700 – 29,750 if successful.

Dow Jones Performance

The Dow Jones index gained ground, testing new highs despite a significant sell-off in Walmart stock, which dropped by 6.7% following a disappointing forecast despite beating earnings expectations. The Dow has settled above the critical 50,000 level and is moving towards the resistance at 50,400 – 50,500, with a successful test potentially leading to a move towards 51,000.

Conclusion

The market is currently navigating through a mix of economic data and geopolitical developments, with traders closely monitoring the outcomes of U.S.-Iran negotiations and their implications for oil prices and broader market sentiment.