Stocks Climb on US-Iran Optimism as SpaceX Debuts: Markets Wrap

(Bloomberg) — Hopes for a diplomatic breakthrough that would end the war in Iran extended a slide in oil prices while lifting stocks, with Wall Street’s enthusiasm also fueled by SpaceX’s strong trading debut.

The S&P 500 extended this week’s gain, with Elon Musk’s space company up 19% after a record-breaking IPO. US oil settled below $85 as the US said an interim peace deal that reopens the Strait of Hormuz and ends Iran’s nuclear weapons ambitions looks increasingly likely and could be signed within days.

A senior administration official estimated an 80% or 85% chance that an accord gets signed soon. President Donald Trump said he thinks a deal could be signed over the weekend or Monday, according to an Axios reporter’s post on X.

Iran’s Foreign Minister Abbas Araghchi noted the Islamabad Memorandum of Understanding has “never been closer.” Pakistan’s Prime Minister Shehbaz Sharif said a “final, agreed upon text of the peace deal has been reached” and his country is working with both sides “to finalize the next steps.”

Equities had briefly fallen after Trump complained about Iran leaking terms of a deal.

As a selloff in oil deepened, concerns over inflationary pressures eased, with traders pushing their wagers for a Federal Reserve rate hike into next year.

Data Friday showed US consumer sentiment rose in early June for the first time in four months as lower gasoline prices provided some relief for Americans.

Consumers expect prices to rise at an annual rate of 4.6% over the next year, down from 4.8% in May. They also saw costs rising at an annual rate of 3.4% over the next five to 10 years, erasing the prior month’s jump.

“In keeping with the recent easing in oil and gas prices, the pullback in consumers’ short- and long-term inflation expectations offers some relief from a monetary policy standpoint,” said Vail Hartman at BMO Capital Markets. “However, the inflation metrics remain elevated versus pre-war levels and in a broader historical context.”

Fed officials are widely expected to hold rates steady at their June 16-17 policy meeting, which will be the first over which the central bank’s new chairman, Kevin Warsh, presides.

Corporate Highlights:

Adobe Inc. sank after saying its chief financial officer would depart, leaving a leadership vacuum following Chief Executive Officer Shantanu Narayen announced his resignation earlier this year. Roku Inc., the streaming video platform, is in talks to sell itself, people with knowledge of the matter said. Exxon Mobil Corp. is studying potential acquisition targets including Australia’s Woodside Energy Group, as the US giant eyes options to deepen its presence in liquefied natural gas and Asian markets, according to people with knowledge of the matter. Blackstone Inc. is in early-stage talks about an acquisition involving H&R Real Estate Investment Trust, a Canadian owner of apartment buildings and other properties. Flutter Entertainment Plc announced plans to delist from the London Stock Exchange about two years after the online betting group shifted its primary listing to New York, the latest company to abandon the UK bourse to prioritize US trading. What Bloomberg Strategists say…

“The pop in stocks on Friday following the latest comments from Iran’s foreign minister shows there’s room for markets to price in added optimism if a concrete deal emerges. Yet the extent of such a reaction will probably be limited.”

—Kristine Aquino, Managing Editor, Markets Live. For the full analysis, click here.

Some of the main moves in markets:

Stocks

The S&P 500 rose 0.5% as of 4 p.m. New York time The Nasdaq 100 rose 0.6% The Dow Jones Industrial Average rose 0.7% The MSCI World Index rose 0.9% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1571 The British pound was little changed at $1.3409 The Japanese yen fell 0.2% to 160.20 per dollar Cryptocurrencies

Bitcoin rose 0.5% to $63,629.27 Ether fell 0.2% to $1,667.04 Bonds

The yield on 10-year Treasuries advanced two basis points to 4.48% Germany’s 10-year yield declined four basis points to 3.00% Britain’s 10-year yield declined seven basis points to 4.84% Commodities

West Texas Intermediate crude fell 3.8% to $84.35 a barrel Spot gold was little changed ©2026 Bloomberg L.P.