By Caitlin McCabe

The momentum behind U.S. stocks seems to have fizzled, after Nvidia's stronger-than-expected results failed to add further juice to the American AI trade.

The chip giant reported record sales and income, but that wasn't enough to satisfy investors, who sent its stock wobbling ahead of the open. Nvidia shares are now ticking up, but all three indexes are lower, likely also dragged by pessimism around negotiations to end the war in the Middle East.

Brent crude futures jumped above $108 a barrel and the 10-year Treasury yield topped 4.6% again after Reuters reported that Iran's Supreme Leader said the country's enriched uranium should not be sent abroad. The fate of Iran's nuclear material is a key sticking point in negotiations between the U.S. and Iran.

The mood was more positive in Asia, where South Korean and Japanese stocks surged on renewed AI enthusiasm. LG Electronics and Hyundai Mobis both rocketed more than 25% after Nvidia's CEO Jensen Huang pointed to opportunities in robotic "physical AI."

Meanwhile, SoftBank shares surged nearly 20% in Japan after news that OpenAI, one of its key investments, is preparing to file for an IPO as soon as this week.

Up ahead, investors will get a look at flash readings on the U.S. manufacturing and services sectors. European data released earlier Thursday flashed a warning sign on the hit from the war in the Middle East.

Write to Caitlin McCabe at caitlin.mccabe@wsj.com

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(END) Dow Jones Newswires

May 21, 2026 09:40 ET (13:40 GMT)

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