Stock Rally Wavers as Traders Weigh Peace Outlook: Markets Wrap
(Bloomberg) — A rally that drove stocks to a series of all-time highs wavered as Wall Street traders weighed prospects for an agreement that would end the war that has roiled financial markets around the world.
Signs of exhaustion emerged in the advance from war-fueled lows, with the S&P 500 fluctuating after an eight-day winning streak. US crude hovered near $92. Treasuries barely budged after this week’s first batch of jobs data that only added to signs of labor-market resilience, reinforcing the case for the Federal Reserve to keep rates higher for longer. Bitcoin fell below $70,000.
President Donald Trump is still optimistic the US can reach an interim peace deal with Iran soon after the Islamic Republic threatened to suspend talks because of Israel’s escalating attacks in Lebanon. Officials in Tehran are discussing their “final text” to send to the US, Iran’s Mehr news agency reported.
The US and Iran started a ceasefire in April, though they’ve skirmished since then and are yet to finalize the details of the memorandum of understanding, which is meant to extend the truce by around two months and lead to the lifting an American blockade of ports.
“While Trump’s insistence that diplomacy is still on the table has helped contain oil prices so far this week, upside risks remain in the event of a collapse in peace negotiations,” said Ian Lyngen at BMO Capital Markets. “For now, the market appears content to lean into the assumption that the US and Iran are on the brink of a deal.”
Meantime, traders parsed the latest economic data to gauge the impacts of the Iran conflict.
US job openings jumped in April to the highest level in almost two years and layoffs fell, adding to signs the labor market remained resilient even as businesses navigated rising energy costs sparked by the war.
Available positions rose to 7.62 million from 6.89 million in March, according to Bureau of Labor Statistics data out Tuesday. The median estimate in a Bloomberg survey of economists called for 6.87 million openings.
Fed Bank of Cleveland President Beth Hammack said it’s reasonable to hold interest rates steady for now given uncertainties about the economic outlook, but officials may need to act soon to address elevated inflation.
“For today, it’s reasonable to keep rates steady given the uncertainties around the economic outlook,” Hammack said Tuesday in remarks prepared for an event in Cleveland. “But if recent data trends continue, it may soon be appropriate for policy to act to address the growing risks of persistently elevated inflation.”
Corporate Highlights:
Marvell Technology Inc. rallied after Nvidia Corp.’s Jensen Huang predicted the semiconductor and networking company will be the next business to hit a $1 trillion valuation, more than five times its current market capitalization. Hewlett Packard Enterprise Co. surged after the company gave an outlook for annual sales that topped Wall Street’s estimates, citing massive growth in AI-fueled demand for its servers and networking. Alphabet Inc. is raising $80 billion through a package of equity offerings, including an investment deal with Berkshire Hathaway Inc., as the company races to fund its ambitious artificial intelligence spending plans. Dollar General Corp. nudged up its profit outlook for this year after its low prices helped it win over more cash-strapped shoppers. Victoria’s Secret & Co. jumped after the company beat earnings estimates and boosted its outlook, adding to signs of progress for Chief Executive Officer Hillary Super’s turnaround plan. Some of the main moves in markets:
Stocks
The S&P 500 was little changed as of 10:16 a.m. New York time The Nasdaq 100 rose 0.2% The Dow Jones Industrial Average fell 0.2% The Stoxx Europe 600 rose 0.4% The MSCI World Index rose 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1642 The British pound rose 0.1% to $1.3470 The Japanese yen fell 0.1% to 159.84 per dollar Cryptocurrencies
Bitcoin fell 4% to $68,499.66 Ether fell 1.9% to $1,965.68 Bonds
The yield on 10-year Treasuries was little changed at 4.45% Germany’s 10-year yield declined three basis points to 2.97% Britain’s 10-year yield declined five basis points to 4.85% Commodities
West Texas Intermediate crude fell 0.2% to $92.02 a barrel Spot gold rose 0.4% to $4,504.92 an ounce ©2026 Bloomberg L.P.
