Stocks Extend Drop on Report Vance’s Trip on Hold: Markets Wrap
(Bloomberg) — A rebound in oil drove stocks lower as traders awaited confirmation that Iran will join the US in peace talks before a ceasefire expires, with the two sides still at odds on key issues.
Equities extended losses after the New York Times reported that Vice President JD Vance’s diplomatic trip to Islamabad has been put on hold after Tehran failed to respond to American negotiating positions. Brent crude hovered near $99. Treasury yields rose alongside the dollar.
President Donald Trump said Tehran had “no choice” but to send a delegation to Pakistan. The US is “ready to go” with a resumption of bombing if a breakthrough isn’t reached, he told CNBC. Parliament Speaker Mohammad Bagher Ghalibaf said Iran would not “accept negotiations under the shadow of threats.”
The standoff threatens to deepen a global energy crunch, with flows through the vital Strait of Hormuz remaining at a virtual standstill. And that’s just one of the unresolved issues, along with the Islamic Republic’s nuclear capabilities and Israel’s military operation in Lebanon.
“Waiting in cash for the all-clear sign is never a profitable strategy, but there are plenty of risks ahead,” said Chris Zaccarelli at Northlight Asset Management. “So it also doesn’t make sense to move to a high risk-taking posture either.”
Meantime, Kevin Warsh, Trump’s nominee to lead the central bank, noted the Federal Reserve needed a new framework for dealing with persistent inflation, without offering more specifics. He also said the US president has not asked him to commit to making certain rate decisions.
“The president nominated me for the position, and I’ll be an independent actor if confirmed as chairman of the Federal Reserve,” Warsh added.
At first glance, a “Warsh Fed” looks pretty much as expected, according to Michael Brown at Pepperstone.
“In short, interest rates will again become the primary policy tool, with the balance sheet likely to take a secondary role, potentially shrinking over time too, albeit within an ‘ample reserves’ regime which may make substantial shrinkage somewhat difficult,” he said.
Traders also parsed the latest economic data. US retail sales soared by the most in a year, suggesting consumers continued to spend on a wide array of merchandise despite a surge in gasoline prices sparked by the war.
Corporate Highlights:
Apple Inc. Chief Executive Officer Tim Cook will hand the reins to hardware boss John Ternus later this year, capping a 15-year tenure that turned the company into a business worth $4 trillion that spans watches, video streaming and financial services. Amazon.com Inc. is investing an additional $5 billion in Anthropic PBC and may inject $20 billion more over time, a deal that strengthens ties in in an increasingly competitive artificial intelligence race. UnitedHealth Group Inc. reported first-quarter profit that blew past Wall Street expectations and boosted its outlook for the year, a sign of the health conglomerate’s progress toward rebuilding credibility with investors after a collapse a year ago. Alaska Air Group Inc. suspended its full-year profit guidance and forecast a deeper loss than Wall Street was expecting for the second quarter, as the US carrier grapples with rising fuel costs amid war in the Middle East. President Donald Trump said he would like to see a buyer emerge for Spirit Aviation Holdings Inc. and was open to the government coming to the aid of the airline, while opposing a merger between American Airlines Group Inc. and United Airlines Holdings Inc. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.5% as of 1:14 p.m. New York time The Nasdaq 100 fell 0.4% The Dow Jones Industrial Average fell 0.4% The MSCI World Index fell 0.7% Currencies
The Bloomberg Dollar Spot Index rose 0.4% The euro fell 0.5% to $1.1726 The British pound fell 0.4% to $1.3482 The Japanese yen fell 0.5% to 159.59 per dollar Cryptocurrencies
Bitcoin fell 1% to $75,517.37 Ether fell 1.6% to $2,299.76 Bonds
The yield on 10-year Treasuries advanced six basis points to 4.31% Germany’s 10-year yield advanced two basis points to 3.00% Britain’s 10-year yield advanced five basis points to 4.88% Commodities
West Texas Intermediate crude rose 5.3% to $94.36 a barrel Spot gold fell 2.4% to $4,705.86 an ounce ©2026 Bloomberg L.P.
