S&P 500 Set for All-Time Highs on Hormuz Deal Push: Markets Wrap
(Bloomberg) — Hopes for a deal to revive the Strait of Hormuz lifted stocks toward all-time highs and bonds rose as oil sank, with Wall Street’s enthusiasm also fueled by a batch of solid corporate earnings.
Brent crude fell to $80 on optimism that mediators will be able to broker a deal and avoid major American airstrikes on Iran. The S&P 500 topped its June closing record. The Nasdaq 100 climbed 2.4% as Palantir Technologies Inc.’s outlook reassured investors about artificial-intelligence demand, with traders now gearing up for SpaceX and Advanced Micro Devices Inc.’s results.
The prospect of a deal between the US and Iran appeared to be gaining traction, after Qatar said a proposal had been drafted and American Treasury Secretary Scott Bessent sounded hopeful on an agreement to reopen the Strait of Hormuz.
“We’re in talks with the Iranians and I think there is a chance we may have a deal today or tomorrow to open the strait,” Bessent told CNBC. Asked whether there would be a toll on maritime traffic, he added: “I think it would be freedom of movement.”
Visible flows through the waterway, which carried about a fifth of the world’s crude before the war, have slowed as attacks on vessels and Iranian threats heightened safety concerns for shipowners and crews. Oil prices have eased dramatically from last month’s peak, however, as President Donald Trump postponed new strikes on Iran to give talks more time.
“Markets are reacting to the possibility that a reopening of the Strait of Hormuz could help normalize global oil supplies and reduce near-term energy price pressures,” said Tony Miano at Wells Fargo Investment Institute. “Lower oil prices can ease inflation concerns.”
That said, inflation is unlikely to normalize overnight, Miano warned. Energy-related pressures may ease, but broader inflation could remain sticky in the near term, limiting how far Treasury yields move lower, he concluded.
Federal Reserve policymakers last week left rates unchanged for a fifth consecutive meeting, but more officials have expressed support for a hike as the Middle East conflict and an AI investment boom fuel inflationary worries.
On the economic front, US job openings eased in June but hiring picked up slightly, indicating relatively steady demand for workers heading into the summer.
That stability gives the Fed room to stay focused on inflation, although Friday’s jobs report could quickly change the conversation, according to Bret Kenwell at eToro.
“A red-hot print could strengthen the case for a September rate hike, particularly with inflation still elevated,” he said. “However, a disappointing report combined with last week’s weaker-than-expected gross domestic product growth could give the Fed more cover to remain on hold.”
Corporate Highlights:
Anthropic PBC has struck a $10 billion deal for computing capacity from a months-old infrastructure startup, according to people familiar with the matter, marking the Claude maker’s latest effort to keep pace with demand for its products. Caterpillar Inc. crushed Wall Street’s second-quarter expectations and raised its sales outlook, easing concerns that demand for power-generation equipment used in data centers was beginning to cool. McDonald’s Corp. named a new US president to bring “focus and urgency” to its home market, after the fast-food chain posted its slowest growth in over a year. Snap Inc. posted higher-than-projected quarterly sales and gave an upbeat forecast for the current period, signaling optimism ahead of the September commercial debut of its first pair of augmented reality glasses. Spotify Technology SA boosted its total users to 777 million in the second quarter, an increase of 12% from the same time last year, while also providing disappointing forecasts for active users and operating income in the current, third quarter. Some of the main moves in markets:
Stocks
The S&P 500 rose 1.2% as of 11:10 a.m. New York time The Nasdaq 100 rose 2.4% The Dow Jones Industrial Average rose 1.5% The Stoxx Europe 600 rose 0.8% The MSCI World Index rose 1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1522 The British pound was little changed at $1.3446 The Japanese yen fell 0.2% to 157.52 per dollar Cryptocurrencies
Bitcoin rose 0.4% to $64,009.2 Ether was little changed at $1,868.79 Bonds
The yield on 10-year Treasuries declined three basis points to 4.64% Germany’s 10-year yield declined three basis points to 3.12% Britain’s 10-year yield declined four basis points to 4.92% Commodities
West Texas Intermediate crude fell 4.3% to $76.91 a barrel Spot gold rose 0.8% to $4,084.86 an ounce ©2026 Bloomberg L.P.
