ORLANDO, Florida, May 20 (Reuters) - Stocks rallied

while oil and bond yields tumbled on Wednesday, on growing hopes

that a U.S.-Iran peace deal could be imminent, and shares in

chipmaker Nvidia fell in after-hours trade after the world's

most valuable company released its latest results.

In my column today, I look at President Donald Trump's

apparent climbdown on interest rates. With inflation

accelerating and bond yields climbing, he has cooled his calls

for incoming Fed Chair Kevin Warsh to cut rates.

If you have more time to read, here are a few articles I

recommend to help you make sense of what happened in markets

today.

1. Fed minutes show more policymakers open to a rate

hike

2. Bond yields may finally be baking in an AI world:

Mike Dolan

3. ECB June rate hike case is nearly sealed but July is

fully open, sources say

4. Target doubles growth forecast, but cites caution as

consumers remain stretched

5. Samsung union suspends planned strike after reaching

tentative pay deal

Today's Key Market Moves

* STOCKS: Asia mostly lower, Europe +1%, UK +1.5%. Main

U.S. indices up 1% or more, Brazil +2%.

* SECTORS/SHARES: Eight S&P 500 sectors up, three down.

Tech +2%, consumer discretionaries +2.5%. Energy -2.6%. Airlines

+9%, Philadelphia semiconductor index +4.5%. Nvidiafalls then

rebounds in choppy after-hours trade following results.

* FX: Dollar index -0.2%. Aussie, kiwi, stokkie biggest

G10 gainers. South Africa the biggest EM gainer, Indonesia rate

hike lifts rupiah.

* BONDS: Yields slide. 10-year U.S. yield -10 bps,

20-year auction is weak. UK yields post double-digit declines

across the curve.

* COMMODITIES/METALS: Oil slumps 5.5%, despite sharp

fall in U.S. stocks.

Today's Talking Points

* Final peace of the jigsaw?

After countless false dawns, are the U.S. and Iran finally

on the verge of agreeing a peace deal? Trump says they are in

the "final stages" of talks. We've been here before, but

investors seem hopeful this time it's different.

On Wednesday, crude oil prices fell over 5%, Treasury yields

had the biggest fall since late March, and Wall Street snapped a

three-day losing streak. Pent-up "risk on" demand is out there.

But if there's no deal, and Nvidia earnings disappoint, it could

be a rocky end to the week.

* Keep the customer satisfied

How resilient is the famously resilient U.S. consumer right

now? Earnings reports and outlooks from some of the country's

largest retailers this week will offer a glimpse - and at first

blush, there may be cause for concern.

Target reported strong results and doubled its sales growth

forecast, but warned about the outlook. TJX, the parent company

of discount retailer TJ Maxx, raised its outlook as cost-wary

consumers flocked to its stores for deals. Signs are, shoppers

are tightening their belts. Walmart releases earnings before the

bell on Thursday.

* Independent thought

U.S. Treasury Secretary Scott Bessent's comments on Japanese

monetary policy, in an interview with Reuters in Paris, were

interesting. He said Bank of Japan Governor Kazuo Ueda will

undoubtedly do a great job "if they will give him the room to do

what he will do."

The pointed jab at Prime Minister Sanae Takaichi shines a

light on the political independence of central banks and their

ability to set policy free from government interference or

influence - a debate echoing around the world, and nowhere

louder than the United States.

What could move markets tomorrow?

* Developments in the Middle East

* PMIs - Japan, euro zone, UK, U.S. (May)

* New Zealand trade (April)

* Australia unemployment (April)

* Japan machinery orders (March)

* Japan trade (April)

* Euro zone current account (March)

* Bank of England Governor Andrew Bailey and policymaker

Alan Taylor speak

* U.S. weekly jobless claims

* U.S. Philly Fed index (May)

* U.S. Treasury sells $19 billion of 10-year TIPS at auction

* Richmond Fed President Thomas Barkin speaks

* U.S. earnings include Walmart

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