{"id":62080,"date":"2026-05-18T16:38:30","date_gmt":"2026-05-18T20:38:30","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wall-street-whipsawed-by-geopolitical-tensions-nvidia-gains-on-china-outlook\/62080\/"},"modified":"2026-05-18T16:38:30","modified_gmt":"2026-05-18T20:38:30","slug":"wall-street-whipsawed-by-geopolitical-tensions-nvidia-gains-on-china-outlook","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wall-street-whipsawed-by-geopolitical-tensions-nvidia-gains-on-china-outlook\/62080\/","title":{"rendered":"Wall Street Whipsawed by Geopolitical Tensions; Nvidia Gains on China Outlook"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Wall Street ended the day mixed<\/strong> as the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"\/stock\/DJI\">DJI<\/a>)<\/strong> rose <strong>0.26%<\/strong> to <strong>49,654.63<\/strong>, while the <strong>Nasdaq (<a href=\"\/stock\/IXIC\">IXIC<\/a>)<\/strong> fell <strong>0.57%<\/strong> amid volatile US-Iran signals.<\/li>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> CEO Jensen Huang expressed optimism that China will eventually open its market to <strong>US AI chips<\/strong>, following his participation in a high-stakes summit in Beijing.<\/li>\n<li><strong>US Treasury Secretary Scott Bessent<\/strong> issued a new <strong>30-day waiver<\/strong> allowing the sale of Russian crude already loaded on tankers to help <strong>stabilize the physical crude market<\/strong> during the ongoing Hormuz crisis.<\/li>\n<li><strong>March TIC flows<\/strong> showed a total net capital inflow of <strong>$150.7 billion<\/strong>, with net long-term transactions reaching <strong>$81.3 billion<\/strong>, signaling continued international demand for US assets.<\/li>\n<li><strong>Sanofi (<a href=\"\/stock\/SNY\">SNY<\/a>)<\/strong> reported positive Phase 2 results for its drug <strong>efdoralprin alfa<\/strong>, which met all key endpoints in treating <strong>Alpha-1 antitrypsin deficiency<\/strong>.<\/li>\n<\/ul>\n<h2>Market Volatility and Geopolitical Uncertainty<\/h2>\n<p>Wall Street experienced a &quot;whipsaw&quot; session on Monday as traders parsed conflicting headlines regarding a potential deal to end the war and reopen the <strong>Strait of Hormuz<\/strong>. While the <strong>Dow Jones<\/strong> managed a modest gain, the <strong>Nasdaq<\/strong> and <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPX\">SPX<\/a>)<\/strong> finished in the red, closing down <strong>0.57%<\/strong> and <strong>0.09%<\/strong> respectively. <em>Market sentiment remains fragile<\/em> as investors balance hopes for a diplomatic breakthrough against <strong>President Trump\u2019s<\/strong> warning that the &quot;clock is ticking&quot; for Tehran.<\/p>\n<p>Geopolitical tensions were further exacerbated by reports from <strong>Tasnim News<\/strong> that Iran detected <strong>US-Israeli drones<\/strong> over <strong>Qeshm Island<\/strong>. <em>Analysts at Citadel<\/em> warned that the current market setup warrants <strong>&quot;more tactical caution,&quot;<\/strong> noting that fund flows driving the recent rally appear mature. Additionally, higher long-end interest rates are beginning to create significant competition for equities, according to <strong>Citadel&#39;s Rubner<\/strong>.<\/p>\n<h2>Energy Markets and Sanctions Relief<\/h2>\n<p>In a strategic move to temper global energy prices, <strong>Treasury Secretary Scott Bessent<\/strong> announced a <strong>30-day extension<\/strong> for a waiver allowing the sale of <strong>Russian crude<\/strong> already at sea. The license is intended to ensure oil reaches &quot;energy-vulnerable&quot; countries and to prevent <strong>China<\/strong> from monopolizing discounted Russian supplies. The <strong>U.S. benchmark crude<\/strong> remained volatile, as <strong>Bank of America&#39;s Francisco Blanch<\/strong> projected <strong>Brent crude<\/strong> to average <strong>$90 per barrel<\/strong> for the remainder of the year, with significant upside if the Iran stalemate persists.<\/p>\n<p>On the domestic front, labor tensions are mounting at <strong>BP (<a href=\"\/stock\/BP\">BP<\/a>)<\/strong>. The <strong>United Steelworkers (USW) 7-1<\/strong> reported that the company refused to confirm if it would end a lockout at the <strong>Whiting refinery<\/strong> without the union&#39;s acceptance of a previous proposal. <strong>BP<\/strong> maintained that while it is &quot;here to bargain,&quot; a settlement agreement is required to end the current work stoppage.<\/p>\n<h2>Technology and Healthcare Developments<\/h2>\n<p><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> shares were in focus after CEO <strong>Jensen Huang<\/strong> told <strong>Bloomberg<\/strong> he believes the Chinese market will eventually open to <strong>US AI chips<\/strong>. Huang acknowledged that while he did not discuss the <strong>H200 chips<\/strong> directly with Chinese officials during his recent trip, the topic was a point of discussion between US and Chinese leadership. <em>Investors are closely watching<\/em> for any formal approval from Beijing, which has so far favored domestic chip development.<\/p>\n<p>In the healthcare sector, <strong>Sanofi (<a href=\"\/stock\/SNY\">SNY<\/a>)<\/strong> announced that its <strong>Phase 2 ElevAATe study<\/strong> for <strong>efdoralprin alfa<\/strong> successfully normalized and maintained functional AAT levels in patients. The drug was well-tolerated, with a safety profile comparable to traditional plasma-derived proteins. These results suggest a potential shift toward <strong>three-weekly dosing<\/strong> schedules, which would offer a significant improvement in patient convenience over current weekly treatments.<\/p>\n<h2>Macroeconomic Data and Political Updates<\/h2>\n<p>The <strong>US Treasury<\/strong> released <strong>Treasury International Capital (TIC)<\/strong> data for March, showing a net inflow of <strong>$150.7 billion<\/strong>, down from a revised <strong>$182.7 billion<\/strong> in February. Despite the overall decline, <strong>net long-term TIC flows<\/strong> rose to <strong>$81.3 billion<\/strong>, up from <strong>$57.0 billion<\/strong> the previous month. This data suggests that <em>global investors remain committed<\/em> to long-term US securities even as short-term capital flows fluctuate.<\/p>\n<p>In Washington, <strong>President Trump<\/strong> announced he would ask the <strong>Department of Justice<\/strong> to investigate mail-in ballots in <strong>Maryland<\/strong>. Meanwhile, <strong>White House spokeswoman Kelly<\/strong> reaffirmed that the President &quot;retains all options at all times&quot; regarding the US force posture in the Middle East. These domestic political developments continue to run parallel to the broader geopolitical crises impacting global trade routes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Wall Street ended the day mixed as the Dow Jones Industrial Average (DJI) rose 0.26% to 49,654.63, while 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