US Stocks Hit Pause as US-Iran Tensions Lift Oil: Markets Wrap
(Bloomberg) — US stocks struggled to build on record gains as growing strains on the ceasefire between the US and Iran sent oil higher for a third straight day.
S&P 500 futures were little changed after the artificial-intelligence trade fueled a nine-day rally in the benchmark index. Brent rose 2.1% to above $98 a barrel. Bond yields advanced across most markets as crude prices stoked concerns about inflationary pressures. European stocks fell 0.4%.
The cautious mood follows flare-ups in the Middle East that are testing a fragile truce between Washington and Tehran, with US forces intercepting ballistic missiles and drones aimed at neighboring countries and striking an Iranian command center in response.
Traders are watching whether the S&P 500 can extend its winning streak to the longest in more than three decades. A narrow rally has seen technology stocks, and chipmakers in particular, leave the rest of the market far behind.
Investors are also awaiting SpaceX’s disclosure of the terms of its initial public offering that is set to be by far the largest in history. Reuters reported that Elon Musk’s rocket launch, satellite and AI company aims to sell more than 550 million shares at $135 apiece for a $75 billion IPO.
“The equity story remains dominated by AI and we do not see any catalyst that could potentially derail the trend,” wrote Mohit Kumar, chief economist and strategist for Europe at Jefferies. “Capex spending remains strong and the earnings season has been positive.”
In tariff news, the US is proposing levies of at least 10% on imports from most major trading partners following an investigation into forced-labor practices, as President Donald Trump seeks to rebuild the sweeping tariff wall struck down by the US Supreme Court.
“There is considerable uncertainty over whether the stated rationale this time will face legal challenges,” said Shen Meng, a director at Beijing-based investment bank Chanson & Co. “So the overall impact is likely to be limited.”
The yen was in focus as investors awaited Bank of Japan Governor Kazuo Ueda’s planned speech for clues on the outlook for interest rates. Traders are reluctant to push the yen beyond the key 160 level against the dollar in the face of the risk of intervention by authorities to prop up the currency.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.4% as of 8:35 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average fell 0.2% The MSCI Asia Pacific Index rose 0.6% The MSCI Emerging Markets Index fell 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1623 The Japanese yen rose 0.2% to 159.63 per dollar The offshore yuan fell 0.1% to 6.7723 per dollar The British pound was little changed at $1.3457 Cryptocurrencies
Bitcoin fell 0.5% to $67,161.79 Ether fell 1.5% to $1,876.44 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.47% Germany’s 10-year yield advanced three basis points to 3.00% Britain’s 10-year yield advanced four basis points to 4.90% Commodities
Brent crude rose 2% to $97.96 a barrel Spot gold fell 0.6% to $4,462.33 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling.
©2026 Bloomberg L.P.
