Stocks Rise as Oil Extends Rout on Stockpile Talks: Markets Wrap
(Bloomberg) — Stocks rebounded as oil sank on hopes the world’s largest economies will be ready to deploy emergency reserves, with the war in Iran posing threats to energy supplies. The dollar fell. Bitcoin jumped.
Mounting assurances from global leaders drove US crude down about 15%, with the Group of Seven nations asking the International Energy Agency to study the volumes that could be released. That’s helped ease concerns about a sustained impact on inflation and the economy, erasing losses in equities. A slew of corporate bond sales kept a lid on Treasuries.
The US and Israel bombarded Iran for an 11th day, with the Islamic Republic firing drones and missiles at targets across the Middle East in return. President Donald Trump’s special envoy Steve Witkoff said the US leader is always willing to talk, while casting doubt on Iranian willingness to do so.
While oil retreated from Monday’s highs of above $100, prices remain up by over 40% this year. The critical Strait of Hormuz remains all but shut. Meantime, Saudi Arabia, Iraq, the United Arab Emirates and Kuwait have all slashed production.
“While traders welcomed the sudden drop in oil prices, the geopolitical backdrop remains far from stable, leaving markets vulnerable to further volatility,” said Fawad Razaqzada at Forex.com.
The S&P 500 rose 0.6%. Tech shares outperformed, with traders awaiting Oracle Corp.’s earnings later Tuesday. West Texas Intermediate crude sank to around $80. The dollar dropped 0.4%. The yield on 10-year Treasuries advanced two basis points to 4.11%.
Addressing concerns about soaring energy prices, Trump said Monday that the US Navy will escort tankers to maintain a steady oil supply through the Strait of Hormuz. The effective closure of the waterway — vital to the world’s flow of petroleum — has created bottlenecks and caused regional energy giants to slash production.
“Trump’s words have sparked significant unwinding in oil and energy prices, helping to ease those fears of inflationary pressures,” said Fiona Cincotta at City Index. “However, we are definitely not out of the woods yet, and any gains will remain limited until there are clear signs of an end to hostilities in the Gulf and shipping through the Strait of Hormuz improves.”
Investors betting on a hawkish response to rising oil prices could be misreading the Federal Reserve, according to Bank of America Corp., which warns that supply shocks can also result in periods of stable interest rates and even deep cuts.
An energy shock isn’t necessarily hawkish, US economist Aditya Bhave noted, because it can create tension between the central bank’s mandates to promote stable prices and support employment.
Corporate Highlights:
Boeing Co. said a wiring flaw found on its 737 Max will delay some deliveries of its cashcow narrowbody jet. Alphabet Inc.’s Google is introducing AI agents across the Pentagon’s three million-strong workforce to automate routine jobs, according to a senior defense official. Nvidia Corp. is making a new investment in Thinking Machines Lab, a company founded by former OpenAI executive Mira Murati. Amazon.com Inc. kicked off what is likely to be one of the biggest corporate bond offerings ever, in the latest blockbuster fundraising to pay for the AI boom. Salesforce Inc. is planning to sell as much as $25 billion of debt to fund a share buyback, according to people with knowledge of the matter. Honeywell Aerospace Inc. began its inaugural US investment-grade bond sale, targeting as much as $16 billion as it prepares for a planned spinoff. Bunge Global SA announced a $3 billion share repurchase plan as the crop trader continues to benefit from its recent acquisition of Viterra. Bill Ackman is returning to the IPO market with a combined offering for his hedge fund manager and a new closed-end fund. AT&T Inc. said it will spend more than $250 billion in five years to expand its telecom infrastructure and business operations. Kohl’s Corp. rebounded after the struggling department-store chain said it was pleased with its performance this year. Novo Nordisk A/S got a warning letter from the US Food and Drug Administration for not reporting all suspected side effects in patients who took Ozempic. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.6% as of 1:07 p.m. New York time The Nasdaq 100 rose 0.7% The Dow Jones Industrial Average rose 0.7% Currencies
The Bloomberg Dollar Spot Index fell 0.4% The euro rose 0.2% to $1.1658 The British pound rose 0.3% to $1.3473 The Japanese yen rose 0.1% to 157.51 per dollar Cryptocurrencies
Bitcoin rose 3.6% to $71,456.76 Ether rose 2.9% to $2,084.85 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.11% Germany’s 10-year yield declined two basis points to 2.84% Britain’s 10-year yield declined nine basis points to 4.55% Commodities
West Texas Intermediate crude fell 15% to $80.62 a barrel Spot gold rose 1.8% to $5,230.34 an ounce ©2026 Bloomberg L.P.
