Stocks Drift Despite Drop in Oil on US-Iran Talks: Markets Wrap
(Bloomberg) — US stocks are heading for a quiet open after the long weekend, with equities finding little support from lower oil prices amid signs of diplomatic headway between the US and Iran.
S&P 500 futures were little changed. Brent crude dropped 2.5% to below $79 a barrel as Vice President JD Vance said US negotiators made a lot of progress in their talks with Iran. Treasuries fell across the curve after Friday’s cash-market holiday. The dollar was trading flat.
Traders also followed the latest developments in UK politics as Prime Minister Keir Starmer announced his resignation outside 10 Downing Street. The pound erased losses after briefly touching a 2026 low, while gilts rallied as an orderly leadership transition took shape.
Oil traders took comfort from evidence of progress in Middle East talks even as President Donald Trump threatened to strike Iran if Hezbollah militants continue to attack Israel. Vance said the warring sides set up a mechanism to keep the Strait of Hormuz open, while Iran agreed to invite nuclear inspectors.
“Even during the midst of the conflict in the Middle East, equities still priced a positive outcome,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “It seems logical that markets don’t rally too hard on something which they had already priced to a fair degree.”
In the UK, the departure of Starmer is putting Britain on course for its seventh premier in a decade and paving the way for Andy Burnham to replace him. The former mayor of Manchester announced his candidacy hours after Starmer’s resignation and received the backing of Wes Streeting, a potential rival.
Starmer said nominations for a new Labour leader will open July 9 and that a contest will be finalized by Sept. 1. The question for investors is about the impact on the UK’s finances if Burnham were to become prime minister.
“Markets would be watching for Burnham’s pick of Chancellor,” wrote Mohit Kumar at Jefferies. “The fear is that Burnham’s policies are left-leaning and if the new chancellor is not credible, it would raise concerns over deficits and borrowing.”
SpaceX shares slid nearly 4% in premarket trading, putting the stock on pace for a third straight loss. The company is also selling investment-grade bonds to fund its AI ambitions.
Chipmakers including Intel Corp. rallied. Getty Images Holdings Inc. soared more than 100% after inking a display partnership with ChatGPT owner OpenAI.
Bond traders, recently forced to reposition for the possibility of higher interest rates ahead, are looking to Thursday’s US personal consumption expenditures price index for a read on whether the market’s hawkish stance is warranted.
Forecasters expect the index, the Federal Reserve’s favorite inflation gauge, to show acceleration on both a monthly and year-over-year basis in May. Fed Governor Christopher Waller is due to speak later on Monday.
What Bloomberg Strategists Say:
“Burnham’s succession is looking more assured as one of the top potential rivals for the job, Wes Streeting, has said he would back Burnham. This makes it less likely any candidate will have to offer some policy red meat to the leftist MPs in the Labour party to win. As far as the markets are concerned, that is a good thing.”
— Simon White, Macro Strategist. For the full post, click here.
Corporate News:
SpaceX is selling investment-grade bonds for the first time in what’s expected to be the start of a massive borrowing spree to fund the company’s AI ambitions following its record $75 billion IPO. AbbVie Inc. agreed to buy Apogee Therapeutics Inc. for $10.9 billion, one of its largest deals in recent years, to bolster its anti-inflammatory portfolio amid growing competition for its best-selling drug. CRH Plc agreed to acquire US construction services company Arcosa for $8.5 billion in what is a record deal for the Irish building materials provider. Lime, the electric bike and scooter rental firm backed by Uber Technologies Inc., and it shareholders are seeking to raise as much as $180.9 million in its US initial public offering. EasyJet Plc has rebuffed three separate offers from Castlelake LP, prompting the investment firm to take its proposal valuing the budget carrier at about £4.74 billion ($6.3 billion) directly to shareholders. The German and French governments are set to hold equal stakes in KNDS NV, one of Europe’s most important defense companies, as it gears up for an initial public offering in the near future. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 8:27 a.m. New York time Nasdaq 100 futures rose 0.3% Futures on the Dow Jones Industrial Average rose 0.1% The Stoxx Europe 600 rose 0.3% The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.1% to $1.1458 The British pound rose 0.2% to $1.3254 The Japanese yen fell 0.3% to 161.76 per dollar Cryptocurrencies
Bitcoin rose 1.7% to $64,849.68 Ether rose 2.7% to $1,765.45 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.48% Germany’s 10-year yield declined three basis points to 2.96% Britain’s 10-year yield declined four basis points to 4.80% Commodities
West Texas Intermediate crude fell 1.6% to $74.63 a barrel Spot gold rose 1.2% to $4,207.60 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Subrat Patnaik.
©2026 Bloomberg L.P.
