US stocks recover as pressure eases from the bond market and oil prices fall

NEW YORK (AP) — The U.S. stock market is recovering Wednesday after pressure eased on Wall Street from the bond market and oil prices gave up some of their big gains.

The S&P 500 rose 0.7% toward its first gain in four days and pulled closer to its all-time high set last week. The Dow Jones Industrial Average was up 280 points, or 0.6%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 1% higher.

The company behind TJ Maxx, Marshalls and other stores helped lead the way and climbed 5.7% after delivering stronger profit and revenue for the latest quarter than analysts expected. CEO Ernie Herrman also said the current quarter is off to a good start, and TJX raised its forecasts for revenue and profit this year.

Red Robin Gourmet Burgers jumped 15.6%, and Cava Group rallied 5.8% following their own better-than-expected profit reports. Such results raise hopes that households can keep spending and driving the economy, even though they’re contending with high gasoline prices and widespread discouragement about economic conditions.

Most big U.S. 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.

The other main lever that helps set stock prices, interest rates, also gave some relief on Wednesday after Treasury yields eased.

The yield on the 10-year Treasury fell to 4.63% from 4.67% late Tuesday and slowed what had been a rapid ascent from less than 4% before the war with Iran. Yields have been climbing in bond markets worldwide on worries about the high oil prices caused by the war, among other factors. That in turn has been slowing economies and weighing on prices for stocks, bitcoin and all kinds of other investments.

Higher yields can drive up rates for mortgages and loans going to companies to build artificial-intelligence data centers, which have been a big source of growth for the economy.

Yields eased Wednesday as oil prices pulled back some more. The price for a barrel of Brent crude fell 4.3% to $106.49, though it remains well above its roughly $70 level from before the war.

A report showing less bad inflation in the United Kingdom than economists expected also helped to keep yields calmer worldwide.

The main event for the market is set for after trading ends for the day. That’s when Nvidia will report its latest results. The chip company has routinely blown past analysts’ profit expectations each quarter, and how it does this time around could determine whether AI stocks and the larger U.S. market can maintain their rally.

Nvidia rose 2% and was the single strongest force lifting the S&P 500 because of its immense size. Other AI winners also helped lead the market, including gains of 7.4% for Advanced Micro Devices and 8.4% for Intel.

On the losing side of Wall Street was Target, which fell 6% 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 may have been even higher for the company’s performance after Target’s stock came into the day with a gain of more than 30% for the year so far, quadruple the S&P 500’s gain.

In stock markets abroad, indexes rose in Europe following weaker finishes across Asia. Tokyo’s Nikkei 225 fell 1.2% as the yield on the 10-year Japanese government bond remained near its highest level since 1997.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Options trader Chris Dattolo works on the floor of the New York Stock Exchange, Wednesday, May 13, 2026. (AP Photo/Richard Drew)

Specialist Michael Pistillo. Left, and trader Fred's Demarco work on the floor of the New York Stock Exchange, Wednesday, May 13, 2026. (AP Photo/Richard Drew)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, May 18, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), right, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, May 20, 2026. (AP Photo/Ahn Young-joon)

Currency traders watch monitors at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, May 20, 2026. (AP Photo/Ahn Young-joon)

A currency trader talks on the phone near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, May 20, 2026. (AP Photo/Ahn Young-joon)

If the NBA had screenwriters, not even they could come up with a start this good to the conference finals.

Victor Wembanyama has 41 points and 24 rebounds. San Antonio goes into Oklahoma City and beats the defending champion Thunder. New York trails by 22 points with about eight minutes left in regulation, then beats Cleveland. Both games go to overtime, a conference finals first. And the score at the end of regulation in both games — 101-101.

Well done, Spurs and Knicks.

If there was a common trend in both games, it was that the best player on the winning teams decided to become the best player on the floor at crunch time. On Monday night, it was Wembanyama for the Spurs. On Tuesday night, it was Jalen Brunson for the Knicks — who led a 44-11 run over the last 13 minutes.

That's right, 44-11.

“I don't know if I've seen that in a playoff game,” Knicks coach Mike Brown said. “I take my hat off to my group.”

Game 2 of Spurs-Thunder is Wednesday. Game 2 of Knicks-Cavaliers is Thursday. The drama is only going to keep building.

“Found a way. ... We got some stops,” Brunson said. “Kept fighting, kept believing, kept chipping away.”

The numbers — from both games — are of the video game variety.

Start with what happened at Madison Square Garden on Tuesday night. A 44-11 run doesn't happen in the NBA, certainly not in the conference finals. Teams that led by 22 points or more in the fourth quarter were 452-1 this season, including playoffs. They're 452-2 now. In the playoffs, teams had won 330 consecutive games when leading by 22 or more points in the fourth quarter since 2013. They're 330-1 now.

Make it make sense.

“I don't have an answer,” Brunson said.

Neither did the Cavaliers, either as it was happening or in the immediate aftermath.

“We got a little unlucky,” Cavaliers coach Kenny Atkinson said. “Brunson obviously took over at the end. ... We played great basketball tonight for three quarters. Unfortunately, the fourth quarter, they dominated us in the fourth quarter.”

A 41-point, 24-rebound game doesn't happen that often, either. Wembanyama was brilliant in his conference finals debut, as was Spurs rookie guard Dylan Harper. The Spurs, like the Cavs, wasted a double-digit lead in the fourth quarter of Game 1 and settled for overtime; San Antonio's lead was 10, not 22, but still double digits.

Unlike the Cavs, they found a way to settle down — repeatedly, really — in the two extra periods Monday night.

“That game was in the balance multiple times for both teams,” Spurs coach Mitch Johnson said Tuesday. “You can't get preoccupied with the outcome because there was so much in the balance that could have went either way.”

In short, stealing home-court advantage by winning Game 1 doesn't mean the Spurs think the series is over. And the Thunder know that Game 1 is meaningful — but not a deciding game by any stretch.

“The cumulative experience just teaches you that it’s a series,” Thunder coach Mark Daigneault said Tuesday. “Game 1’s a starting point, not an end point. We’ve lost playoff series that we’ve won Game 1 pretty convincingly. And we’ve also won series that we won Game 1. So, every series is different. It’s the first to four. They’re 25% of the way there and we’re at zero right now. But there’s a lot of basketball left to be played. I think this team kind of understands the length of the series, the length of the playoff run and the length of a playoff game.”

The defending champions are feeling some pressure. New York is rocking. Wembanyama's star keeps rising. The Cavaliers — winners of two Game 7s in these playoffs — need to dig their way out of trouble, again.

The start to these conference-final stories was stellar. Chapter 2 awaits.

On Basketball analyzes the biggest topics in the NBA.

AP NBA: https://apnews.com/nba

Oklahoma City Thunder center Isaiah Hartenstein (55) fouls San Antonio Spurs center Luke Kornet (7) during the first half of Game 1 in a third-round NBA basketball playoffs series Monday, May 18, 2026, in Oklahoma City. (AP Photo/Nate Billings)

New York Knicks' Jalen Brunson reacts after a basket during the second half of Game 1 in the Eastern Conference finals NBA basketball playoffs series against the Cleveland Cavaliers, Tuesday, May 19, 2026, in New York. (AP Photo/Seth Wenig)

Spike Lee celebrates during a break in the second half of Game 1 in the Eastern Conference finals NBA basketball playoffs series between the New York Knicks and the Cleveland Cavaliers, Tuesday, May 19, 2026, in New York. (AP Photo/Seth Wenig)

San Antonio Spurs forward Victor Wembanyama (1) celebrates with teammates after winning Game 1 in a third-round NBA basketball playoffs series against the Oklahoma City Thunder Monday, May 18, 2026, in Oklahoma City. (AP Photo/Nate Billings)

New York Knicks guard Landry Shamet (44) celebrates with teammates after scoring a three-point basket during the first overtime of Game 1 in the Eastern Conference finals NBA basketball playoffs series against the Cleveland Cavaliers, Tuesday, May 19, 2026, in New York. (AP Photo/Yuki Iwamura)