Stocks Stall as Iran Nuclear Talks Hit Early Snag: Markets Wrap
(Bloomberg) — Global stocks are ending a strong week on a cautious note as relief over an interim peace deal between the US and Iran gave way to a focus on the challenges of securing a lasting agreement.
With US cash markets closed for the Juneteenth holiday, S&P 500 futures declined after the benchmark posted its best week since the end of May. Europe’s Stoxx 600 dipped 0.2%, while Asian stocks retreated 0.3% from an all-time high. Markets in China, Hong Kong and Taiwan were shut as well.
Talks on a permanent deal that were scheduled for Friday in Switzerland have been delayed. Israel and Iran-backed Hezbollah militants clashed overnight in Lebanon, a development that was behind the meeting’s postponement, according to people familiar with the matter.
Israel and Hezbollah have now agreed to a ceasefire as of 4 p.m. local time, according to a US official. Iran has made a truce in Lebanon a condition of its preliminary deal with the US.
Brent crude rose 0.9% to above $80 a barrel, paring a 7.7% drop for the week through Thursday. Traffic through the Strait of Hormuz appeared to thin on Friday, just a day after a burst in flows through the waterway. Meanwhile, Tehran said ships that cross the strait need its permission.
The developments are a test to the optimism that has seen a technology-led rally in stocks gain further momentum after the US and Iran lifted a months-long dual blockade of the Strait of Hormuz. Friday’s talks were meant to kick off a 60-day negotiating window for a permanent deal on Iran’s nuclear activities.
“Of course, with Trump there can always be some derailment along the way, but we believe that we’re set into a new phase of de-escalation,” said Alexandre Drabowicz at Indosuez Wealth Management. He advised investors not to rush to conclusions about a permanent deal.
UK gilts led a broad advance in European bond yields after Greater Manchester Mayor Andy Burnham won a seat in Parliament, handing him a pathway to challenge Prime Minister Keir Starmer for his job. Investors are debating whether a Burnham premiership might shift to a looser fiscal policy.
The pound outperformed most major currencies, while the dollar held at its highest level since March. Bitcoin snapped a three-day losing streak. Gold headed for a third straight weekly loss, trading around $4,150 an ounce.
Global markets are wrapping up a pivotal week marked by the landmark US-Iran interim agreement, Federal Reserve Chair Kevin Warsh’s first policy meeting and SpaceX’s early days as a public company. Stocks have shown resilience, buoyed in part by the frenzy around artificial intelligence.
Strategists surveyed by Bloomberg have raised their S&P 500 year-end targets from a month ago as disruptions from the Iran war eased and the earnings outlook improved.
The average target climbed to 7,716 from 7,612 in May. That’s almost 3% higher than the last close and implies a near 13% gain for the year. Earnings estimates also increased for this year and next.
“Markets seem to be entering a rare couple of weeks with no major catalysts ahead,” said Roberto Scholtes, head of strategy at Singular Bank. “Hopefully, this is a chance to take a breather after a hectic year, and possibly also a period of sector rotation.”
What Bloomberg’s Strategists Say:
“Gilts are extending their declines and underperforming regional peers. However, the extent of the moves are being exacerbated by gains in oil since yesterday afternoon. That isn’t to say that UK bonds are out of the woods. Markets require greater detail on how protracted any leadership race will be, with a more drawn-out affair worse for gilts.”
— Adam Linton, macro strategist. For the full analysis, click here.
Corporate News:
AbbVie Inc. is nearing a deal to buy Apogee Therapeutics Inc. for almost $11 billion to bolster the drug giant’s anti-inflammatory portfolio, according to a Financial Times report. Commerzbank AG investors representing 12.51% of shares took up UniCredit SpA’s €42 billion ($48 billion) takeover offer during the first acceptance period, pushing the Italian lender ever closer toward what would be Europe’s biggest bank deal in decades. US Commerce Secretary Howard Lutnick outlined concerns to ASML Holding NV’s senior leaders that one of its top-of-the-line machines may have made its way into China, in violation of US-led export restrictions. RWE AG is nearing a deal to boost its stake in Amprion by buying stakes from Swiss Life and a German pension fund as part of a deal that could value the transmission grid at about €10 billion, according to people familiar with the matter. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.2% as of 1:05 p.m. New York time Futures on the Dow Jones Industrial Average fell 0.2% Nasdaq 100 futures fell 0.2% The MSCI Asia Pacific Index fell 0.3% The MSCI Emerging Markets Index fell 0.4% Ibovespa Brasil Sao Paulo Stock Exchange Index fell 0.2%, falling for the sixth straight day S&P/BMV IPC fell 1.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1472 The British pound strengthened 0.2% The Japanese yen was little changed at 161.32 per dollar The offshore yuan was little changed at 6.7838 per dollar The Mexican peso surged 0.2% Cryptocurrencies
Bitcoin weakened 0.2%,falling for the fourth straight day, the longest losing streak since June 6, 2026 Ether weakened 0.9%,falling for the fourth straight day, the longest losing streak since June 6, 2026 Bonds
The yield on 10-year Treasuries was little changed at 4.45% Germany’s 10-year yield advanced six basis points to 2.99% Britain’s 10-year yield advanced nine basis points, more than any closing advance since June 1, 2026 Commodities
West Texas Intermediate crude rose 1.2% Spot gold fell 1.3% to $4,155.71 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Macarena Muñoz, Neil Campling, Farah Elbahrawy and Sebastian Boyd.
©2026 Bloomberg L.P.
