Stocks Fall From Record Highs as Oil Rises to $95: Markets Wrap
(Bloomberg) — A rally that drove stocks to all-time highs faltered and oil rose as traders awaited updates on a potential US-Iran deal that would revive energy flows through the key Strait of Hormuz.
Following the biggest advance in a month, the S&P 500 fell while still remaining on track for its sixth straight week of gains. US crude erased a drop that earlier drove it below $90 a barrel, rising to $95. Bond yields climbed.
The US is waiting on Iran to respond to its proposal to reopen Hormuz and end a nearly 10-week war, with tensions still high in both the Persian Gulf and in Lebanon. The latest peace push followed weeks of deadlock and failed attempts to hold talks.
An Iranian official said the nation wouldn’t allow a strait reopening with “an unrealistic plan,” the Wall Street Journal reported, citing Press TV. A confidential CIA analysis concluded Iran can survive the US blockade for at least three to four months before facing more severe hardship, according to the Washington Post.
Tehran has laid out a set of new rules for vessels seeking to transit the Hormuz, according to a document seen by CNN, pressing ahead with efforts to formalize control over the waterway in defiance of US warnings.
Oil prices will continue to fluctuate wildly until it’s clear whether Iran and President Donald Trump will strike an agreement to end the war, according to Citigroup Inc.’s Max Layton.
“In that environment where you basically don’t know if there’s going to be a deal or not — very difficult to predict with this new leadership in Iran — you know you’re going to be subject to news and you’re going to be moving around like crazy,” he told Bloomberg Television.
“Investors were sitting tightly as the US awaited Iran’s response to a proposed peace deal,” said Fawad Razaqzada at Forex.com. “If the deal is agreed, it could see the Strait of Hormuz reopen and ease the regional conflict. The resulting drop in oil should be a positive development for global stock markets.”
Wall Street’s optimism around a resolution of the war had recently buoyed investor sentiment, which was also bolstered by solid corporate earnings and signs of economic resilience.
“Markets continue to be underpinned by strong and accelerating corporate earnings and resilient economic fundamentals, even as investors navigate ongoing geopolitical uncertainty,” said Mona Mahajan at Edward Jones.
In the run-up to the US payrolls report, initial jobless claims rebounded slightly after falling in the previous week to near the lowest levels in decades, signaling layoffs remain muted. Friday’s jobs reading is expected to show the first back-to-back monthly increases in payrolls in almost a year.
Corporate Highlights:
Datadog Inc. surged after the software developer raised its full-year outlook for sales and earnings, far exceeding Wall Street’s expectations. Arm Holdings Plc fell as a slowdown in the smartphone industry took a toll on the chip firm’s royalty revenue, overshadowing growth in the AI data-center market. Peloton Interactive Inc. raised its outlook for the full year, suggesting that a turnaround fueled by new commercial offerings and upgraded equipment is on track. Planet Fitness Inc. cut its full-year revenue outlook, citing weaker-than-expected member sign-ups during the typically busy New Year period. Shake Shack Inc. sank as first-quarter revenue missed expectations due to pressures including rising beef costs and inclement weather. What Bloomberg strategists say…
“Oil’s drop looks excessive for a market where the physical squeeze remains messy. Futures are pricing lower escalation risk, yet tight product markets should keep spot barrels bid.”
—Michael Ball, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 fell 0.3% as of 1 p.m. New York time The Nasdaq 100 was little changed The Dow Jones Industrial Average fell 0.6% The MSCI World Index fell 0.3% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1761 The British pound was little changed at $1.3594 The Japanese yen fell 0.2% to 156.64 per dollar Cryptocurrencies
Bitcoin fell 2% to $79,787.99 Ether fell 2.5% to $2,291.66 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.38% Germany’s 10-year yield was little changed at 3.00% Britain’s 10-year yield was little changed at 4.95% Commodities
West Texas Intermediate crude rose 0.6% to $95.69 a barrel Spot gold rose 0.5% to $4,715.37 an ounce ©2026 Bloomberg L.P.
