* US stocks end higher

* Iran, U.S. stickto opposing stances over Tehran's

uranium stockpile, Strait

* Nvidia ( NVDA ) stock slips despite earnings beating forecasts

(Updates with closing US market levels)

By Caroline Valetkevitch and Harry Robertson

NEW YORK/LONDON, May 21 (Reuters) - Oil prices fell and

stocks rose on Thursday as investors were optimistic about

possible progress in peace talks over the Middle East war,

although the U.S. and Iran stuck to opposing stances over

Tehran's uranium stockpile and controls on the Strait of Hormuz.

A senior Iranian source told Reuters no deal has been reached

with the U.S. but the gaps have been narrowed, while U.S.

Secretary of State Marco Rubio said there had been "some good

signs" in talks but any toll system in the strait would be

unacceptable.

U.S. President Donald Trump said the U.S. will eventually

recover Iran's stockpile of highly enriched uranium.

Oil prices had been higher earlier in the day, while major U.S.

stock indexes were all lower after Reuters reported Iran's

supreme leader has issued a directive that the country's

near-weapons-grade uranium should not be sent abroad.

U.S. Treasury yields were lower in the afternoon amid hopes of

peace deal progress. The yield on the benchmark 10-year Treasury

note was last down 0.8 basis points on the day at

4.575%. It reached its highest level since January 2025 on

Tuesday.

The war, which began on February 28, has sent energy prices

soaring and sparked concerns about higher inflation and consumer

spending.

U.S. crude fell $1.91 to settle at $96.35. Brent

declined $2.44 to settle at $102.58.

"Oil is down and below $100, and that's a good thing," said

Adam Sarhan, chief executive of 50 Park Investments in New York.

But also, Sarhan said, investors have remained upbeat about the

outlook for stocks, especially in technology.

Shares of Nvidia ( NVDA ), the world's biggest company by market

capitalization, ended down 1.8% as investors took profits after

recent sharp gains. Nvidia ( NVDA ) late on Wednesday reported earnings

that beat Wall Street expectations and announced an $80 billion

share repurchase program.

The Dow Jones Industrial Average rose 276.31 points, or

0.55%, to 50,285.66, the S&P 500 rose 12.75 points, or

0.17%, to 7,445.72 and the Nasdaq Composite rose 22.74

points, or 0.09%, to 26,293.10.

MSCI's gauge of stocks across the globe rose

5.24 points, or 0.48%, to 1,106.89.

The pan-European STOXX 600 index finished up 0.04%.

Shares of IBM ( IBM ) rose 12.4% after news that the Trump

administration will fund a handful of quantum computing

companies, including a new IBM ( IBM ) venture, in exchange for stakes

in some of the firms.

Shares of D-Wave Quantum ( QBTS ) and other quantum computing

stocks also jumped.

"When you look at the normal economic environment

surrounding this market, you would expect (stocks) to be lower,

but if you believe the war will come to an end soon - that we're

at a temporary high on energy prices, it does push you to look

more not just at the underlying earnings that have been good but

also the earnings potential that comes from AI," said Rick

Meckler, partner at Cherry Lane Investments.

SpaceX unveiled its IPO filing late on Wednesday, giving the

market its first glimpse into how much billionaire Elon Musk is

spending on AI as he bets on transforming the rocket maker into

a broader AI-led business.

Investors were also watching developments in Turkey. Trading on

Turkey's stock market was temporarily halted after sharp falls

and the government's bonds slid after one of the country's top

courts dealt the latest blow to the main political opposition

party. The court annulled the Republican People's Party congress

in 2023 at which its chairman, Ozgur Ozel, was elected.

The U.S.-traded iShares MSCI Turkey exchange-traded fund

was down 9.2%.

The dollar index was flat late on Thursday as traders weighed

the likelihood of a near-term deal to end the war, having

earlier touched a six-week high.

The dollar index, which measures the greenback against a

basket of currencies including the yen and the euro, was

unchanged on the day at 99.13, with the euro down 0.03%

at $1.1624.

Spot gold fell 0.04% to $4,541.79 an ounce.