Hopes for an agreement to revive the Strait of Hormuz spurred a rebound in stocks and bonds from session lows in a volatile session marked by still-elevated oil prices.
The S&P 500 erased its decline after Reuters reported that US and Iranian negotiators are exploring a phased path out of war that would involve Tehran reopening the waterway and Washington lifting its economic blockade. A selloff in Treasuries also waned, though 30-year yields remained at the highest since 2004. Brent crude traded around $104.
Earlier this week President Donald Trump said his officials had “very good” talks with Iranian envoys in New York, reviving hopes for a diplomatic off-ramp. A day later, Iranian leader Masoud Pezeshkian noted his country won’t allow freedom of navigation through the Strait of Hormuz while sanctions and a US blockade remain in place.
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The US and Israel started the war against Iran in late February, with the stated aim being to prevent Tehran from developing a nuclear weapon. The conflict has roiled the Middle East and energy markets and resulted in a months-long standoff, with traffic severely restricted through Hormuz.
“Any easing of geopolitical tensions that helps relieve pressure on energy prices could go a long way toward stabilizing the bond market, in our view,” said Angelo Kourkafas at Edward Jones. “Until then, we believe upward pressure on yields is likely to persist as expectations for additional Fed tightening remain elevated.”
Photo Credit: Bloomberg
Corporate Highlights:
- Oracle Corp. is moving to shield itself from racking up expenses on a massive data center being built in New Mexico, adding a fresh wrinkle to a project beset by opposition and regulatory setbacks.
- Qualcomm Inc. said it has renewed its global licensing pact with Apple Inc., effective in April 2027, ensuring the iPhone maker will remain a key customer in the near term.
- Paramount Skydance Corp. is seeking to raise $7.5 billion through term loans to help fund its planned takeover of Warner Bros. Discovery Inc., kicking off one of the largest buyout debt packages on record.
- PepsiCo Inc. is raising prices on some chips, soda and dips just months after pledging to make its snacks more affordable.
- Darden Restaurants Inc. reported quarterly same-store sales at its Olive Garden and LongHorn Steakhouse chains that trailed analyst expectations amid fierce competition from other casual restaurant chains.
- Barry Diller’s People Inc. dropped plans to acquire the rest of casino giant MGM Resorts International.
Stocks
- The S&P 500 rose 0.1% as of 12:50 p.m. New York time
- The Nasdaq 100 was little changed
- The Dow Jones Industrial Average fell 0.1%
- The MSCI World Index was little changed
Currencies
- The Bloomberg Dollar Spot Index rose 0.2%
- The euro was unchanged at $1.1382
- The British pound was little changed at $1.3233
- The Japanese yen fell 0.3% to 158.74 per dollar
Cryptocurrencies
- Bitcoin rose 0.4% to $84,564.45
- Ether rose 0.7% to $2,689.29
Bonds
- The yield on 10-year Treasuries advanced two basis points to 5.14%
- Germany’s 10-year yield advanced four basis points to 3.60%
- Britain’s 10-year yield advanced three basis points to 5.38%
- The yield on 2-year Treasuries declined two basis points to 4.88%
- The yield on 30-year Treasuries advanced three basis points to 5.43%
Commodities
- West Texas Intermediate crude rose 1.9% to $93.90 a barrel
- Spot gold fell 0.3% to $4,276.37 an ounce
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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