Stocks Climb, Oil Tumbles on Iran Peace Push Hopes: Markets Wrap
(Bloomberg) — US stocks extended gains, with the Nasdaq 100 on pace for its longest winning streak since 2021, as optimism on the possibility of another round of peace talks between the US and Iran pushed down oil prices and boosted risk appetite around the globe.
The tech-heavy Nasdaq 100 rose 0.9%, pointing to a 10th straight day of wins. The S&P 500 was 0.7% higher after erasing its war-driven losses on Monday. Shares in Europe and Asia advanced on hopes that a deal in the Middle East will help normalize energy flows and halt the threat of a global inflationary spiral.
Iran is considering a short-term pause to shipments through the Strait of Hormuz to avoid testing a US blockade and scuppering negotiations, according to a person familiar with Tehran’s deliberations. The potential pause reflects a desire to avoid immediate escalation as the parties sort logistics for another face-to-face meeting, the person said.
Brent fell nearly 3% toward $96 a barrel, with the International Energy Agency estimating that the war will wipe out global oil demand growth for the first time since the 2020 pandemic. The dollar headed for a seventh straight day of losses, while Treasuries gained. Bitcoin hit a four-week high.
“Markets were already leaning toward the view that diplomacy would stay alive in some form,” said Charu Chanana, chief investment strategist at Saxo Markets. “This signal matters because it turns that hope into something more tangible, and that is enough to reinforce the relief trade.”
Traders are also focused on first-quarter earnings at a time when the war in the Middle East is weighing on the outlook for the economy. JPMorgan Chase & Co. shares slipped despite a record quarterly trading revenue haul. Wells Fargo & Co. dropped 5%. Citigroup Inc. rose 1.9% after reporting its highest quarterly return in five years on tangible common equity.
“A near‑term grind‑higher in equities remains possible if the ceasefire holds and earnings surprise to the upside, but this window looks inherently unstable,” wrote Barclays equity derivatives strategists led by Stefano Pascale.
Meanwhile, US wholesale prices rose by less than expected in March, despite a surge in energy costs tied to the Iran war, data from the Bureau of Labor Statistics showed on Tuesday. The producer price index rose 0.5%, with an underlying gauge that excludes food and energy up just 0.1%. Economists projected a 1.1% for the PPI from a month earlier.
The data follow figures last week that showed US consumer prices surged in March because of skyrocketing gasoline prices, even as underlying inflation came in below estimates.
“The war in the Middle East is proving to be the latest stress test for the US economy, which seems to be passing it, so far,” wrote veteran strategist Ed Yardeni, of Yardeni Research.
What Bloomberg’s Strategists Say:
“The S&P 500 is rising because markets are leaning into the belief the Iran War stops short of a full economic hit. The ceasefire appears to be holding, Saudi east-west pipeline capacity has been restored, and Iran is considering a pause in its own shipments through the Strait of Hormuz to facilitate further talks. Each headline on renewed negotiations keeps diplomacy alive, allowing traders see a smaller tail risk.“
— Michael Ball, Macro Strategist, Markets Live. For the full analysis, click here.
Corporate Highlights:
Citigroup Inc. traders rode a wave of volatility to push the Wall Street bank to its highest quarterly revenue in a decade, notching another success for Chief Executive Officer Jane Fraser’s turnaround plan. JPMorgan Chase & Co.’s traders posted their highest-ever quarterly revenue in the first three months of the year, with record stock-trading results boosting the total past the firm’s previous record by almost $2 billion. BlackRock Inc. took in a net $130 billion of client cash in the first quarter, with investor money continuing to pour in despite volatility in the public and private markets and protracted uncertainty over the war in Iran. Wells Fargo & Co. said its exposure to private-credit firms was roughly $36.2 billion in the first quarter, offering details on a category closely watched by investors. United Airlines Holdings Inc. Chief Executive Officer Scott Kirby has floated a possible combination with American Airlines Group Inc., according to people familiar with the conversations. American Airlines jumped more than 7% in premarket trading while United rose more than 3%. Lucid Group Inc. named a new chief executive officer and announced $750 million of fresh investment from its two biggest backers, moves to shore up its operations as the electric-vehicle maker approaches a crucial production stretch. Johnson & Johnson reported first-quarter sales above Wall Street’s expectations and bumped up its outlook for the year, led by strong growth of new cancer medicines and a drug for treatment-resistant depression. BP Plc said its oil trading performance was exceptional in the first quarter as the Iran war caused a surge in prices. A Blue Owl Capital Inc. private credit fund raised $400 million from bond investors Monday, marking the first deal of its kind in over a month. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.7% as of 11:06 a.m. New York time The Nasdaq 100 rose 0.9% The Dow Jones Industrial Average rose 0.5% The Stoxx Europe 600 rose 0.9% The MSCI World Index rose 1% Currencies
The Bloomberg Dollar Spot Index fell 0.4% The euro rose 0.4% to $1.1801 The British pound rose 0.5% to $1.3576 The Japanese yen rose 0.4% to 158.79 per dollar Cryptocurrencies
Bitcoin rose 2.4% to $74,941.84 Ether rose 4.2% to $2,348.89 Bonds
The yield on 10-year Treasuries declined two basis points to 4.28% Germany’s 10-year yield declined six basis points to 3.03% Britain’s 10-year yield declined eight basis points to 4.79% Commodities
West Texas Intermediate crude fell 4.8% to $94.31 a barrel Spot gold rose 1.1% to $4,793.49 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee.
©2026 Bloomberg L.P.
