Explained - The Donald Trump post that sparked a US market recovery on Monday

Wall Street indices recovered partially on May 18 after US President Donald Trump announced he was postponing a planned attack on Iran following requests from Qatari Emir Tamim bin Hamad Al Thani, Saudi Crown Prince Mohammed bin Salman, and UAE President Mohammed bin Zayed al Nahyan. In a Truth Social post, Trump stated that serious negotiations were underway with Iran to prevent it from acquiring a nuclear weapon, while also instructing the Department of War and military to prepare for potential action if talks fail. The Dow Jones rebounded over 300 points from its intraday low, closing with gains of 160 points, though futures had initially dropped nearly 500 points after Sunday’s trading resumed. The S&P 500 recovered 50 points but ended slightly negative, while the Nasdaq underperformed for the second consecutive day, closing down 0.5% due to profit-taking in tech and memory chip stocks. Memory chip stocks led declines, with Seagate dropping 7% after its CEO warned at a JPMorgan conference that new factory construction would take too long to meet demand. Micron, SanDisk, and Western Digital also fell between 5% and 7%, despite their gains of 120% to 380% in 2026. Nvidia and Broadcom each declined 1%, pressuring the Nasdaq further ahead of Nvidia’s earnings report after market hours on May 19. Trump’s announcement had limited broader market impact beyond Wall Street. Crude oil prices dipped slightly but remained elevated, while the US 10-year bond yield stayed near 4.6% and Japan’s 30-year bond yield hit a record high. The US Dollar index slipped below 99 following the post. Retail companies, including Home Depot, began reporting quarterly earnings later in the day, marking a shift in focus from geopolitical developments to corporate performance.