S&P 500 Fluctuates on Conflicting US-Iran Signals: Markets Wrap
(Bloomberg) — Wall Street traders sent stocks wavering amid mixed signals about prospects for a US-Iran deal to end the war and revive energy flows through the key Strait of Hormuz.
Following a blistering advance to all-time highs, the S&P 500 fluctuated. In a volatile session, US crude dropped below $90 a barrel.
President Donald Trump said he was “not satisfied” in negotiations with Iran, damping expectations for an imminent breakthrough.
His remarks followed an Iranian media report on a draft interim peace deal, which said traffic through Hormuz could return to normal within a month of it coming into effect. The White House cast the report as false.
“We’ll see over the next few hours and days whether progress could be made,” US Secretary of State Marco Rubio said on Iran talks. US Special Envoy Steve Witkoff, Jared Kushner and Vice President JD Vance “have been very involved” on Iran, he noted.
“The stock market has enough confidence that a resolution with Iran will eventually come to light, even if it’s not immediate,” said Alexander Guiliano at Resonate Wealth Partners. “While it may seem like stocks have moved too fast, we saw a garden variety correction only two months ago, which helped to reset sentiment and pave the way for this most recent rally.”
Veteran market strategist Ed Yardeni dismissed concerns that US stocks are in a bubble, arguing the recent advance was driven by solid corporate profits rather than speculation.
“The big difference is earnings,” Yardeni told Bloomberg Television’s Surveillance. He coined the term “FEMO” — fabulous earnings momentum — to distinguish the current rally from “FOMO,” or fear of missing out, which he said is based on hope and hype rather than fundamentals.
Earnings growth powered by the AI boom will drive further gains in stocks, Goldman Sachs Group Inc. strategists led by Ben Snider said as they increased their year-end target for the S&P 500 to 8,000 points. The gauge currently trades near 7,500.
“Continued earnings growth should drive continued equity market upside,” they wrote. “The increased return forecast reflects increased estimates for S&P 500 earnings following an exceptionally strong first-quarter reporting season.”
Corporate Highlights:
While software stocks rebound from the artificial intelligence-driven wipeout earlier this year, Salesforce Inc. hasn’t really benefited. But its earnings after the close Wednesday could pull the company’s shares out of their malaise. Bank of America Corp. expects second-quarter revenue from sales and trading to increase about 15% from a year ago while the economy remains resilient, according to Chief Executive Officer Brian Moynihan. Boeing Co.’s Chief Executive Officer gave investors an optimistic forecast for this year and beyond, as the US planemaker raises production on its workhorse 737 Max jet, nears certification on long-delayed models and expects a windfall from defense spending. Lululemon Athletica Inc. agreed to resolve a long-running dispute with founder Chip Wilson by appointing three new members to a board of directors the billionaire has campaigned against for months. Blackstone Inc. is providing as much as $1.3 billion in financing to Apogee Therapeutics Inc. to help the biotech company advance a potential competitor to the blockbuster drug Dupixent. Some of the main moves in markets:
Stocks
The S&P 500 was little changed as of 12:45 p.m. New York time The Nasdaq 100 fell 0.1% The Dow Jones Industrial Average rose 0.4% The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1632 The British pound fell 0.1% to $1.3428 The Japanese yen fell 0.1% to 159.50 per dollar Cryptocurrencies
Bitcoin fell 1.3% to $75,017.09 Ether fell 0.7% to $2,062.06 Bonds
The yield on 10-year Treasuries declined one basis point to 4.47% Germany’s 10-year yield was little changed at 2.99% Britain’s 10-year yield declined two basis points to 4.86% Commodities
West Texas Intermediate crude fell 4.6% to $89.54 a barrel Spot gold fell 1.3% to $4,451.41 an ounce ©2026 Bloomberg L.P.
