Stocks and Bonds Rise After US-Iran Deal Reports: Markets Wrap
(Bloomberg) — Wall Street traders sent stocks toward all-time highs, bonds rose while a rally in oil waned on speculation about a diplomatic breakthrough in the three-month war that has rattled global markets.
Equities rebounded on news reports the US and Iran have reached a tentative deal to extend a ceasefire by 60 days and launch further talks on Tehran’s nuclear program. The S&P 500 advanced for a sixth consecutive day. Brent crude settled below $94 a barrel. Treasury yields dropped across the curve. The dollar fell against all developed-world currencies.
President Donald Trump has yet to agree to the terms, Bloomberg News and Axios reported. Treasury Secretary Scott Bessent would only say “the teams have been going back and forth.” He insisted Trump’s three “red lines” — reopening the Strait of Hormuz, Iran turning over highly enriched uranium and ending its nuclear program — remain necessary for any pact.
The news came after renewed clashes in the Persian Gulf highlighted the challenge of forging a peace deal that would restore global energy flows. The effective closure of Hormuz since the start of the war in late February has disrupted energy supplies, leading to a surge in fuel prices.
“Markets continue to get whipsawed by swings in Iran war sentiment,” said Elias Haddad at Brown Brothers Harriman & Co. “Regardless, risk-on sentiment should remain supported because both sides are still talking to work out a deal that would ultimately reopen the Strait of Hormuz.”
An agreement to extend the truce would potentially bring the US and Iran closer to reopening normal traffic through the Strait of Hormuz, which usually carries around a fifth of the world’s oil and liquefied natural gas supply. But further negotiations over Tehran’s nuclear program would be needed to reach a final peace deal, even if a preliminary pact is reached.
Investors may be underestimating the chances of a “timely” reopening of Hormuz triggering a broad relief rally across financial markets, according to Citadel Securities’ Frank Flight.
“Even if it is only a 60-day agreement to allow a resumption of traffic in the Strait, there should be a relief rally, as serious supply dislocations are approaching rapidly,” said veteran strategist Louis Navellier.
Higher energy costs have fueled price pressures, raising concerns the Federal Reserve would be forced to boost rates. US consumer spending edged up in April, with annual inflation accelerating to the highest since 2023. Meantime, the economy expanded in the first quarter at a 1.6% annualized pace, slower than previously estimated.
“The economy is still expanding, but hotter inflation limits the Fed’s flexibility and pushes rate cuts further out,” said Gina Bolvin at Bolvin Wealth Management Group. “This is a more difficult environment for investors because the growth story is cooling just as inflation is heating back up.”
Corporate Highlights:
Anthropic PBC raised $65 billion in a funding round that valued the artificial intelligence company at $965 billion including the new investment, eclipsing rival OpenAI’s value for the first time. Snowflake Inc. gave a stronger-than-expected annual outlook and signed a $6 billion multiyear agreement to use Amazon.com Inc.’s cloud services and chips. Marvell Technology Inc. delivered a quarterly forecast that exceeded estimates and boosted its outlook for the year, citing demand for chips used in AI data centers. Retailers Kohl’s Corp. to Best Buy Co. and Dollar Tree Inc. climbed on optimism that shoppers are still spending when they see what they want at the right price. Real estate mogul Tilman Fertitta’s years-long quest to buy Caesars Entertainment Inc. is finally paying off: His firm struck a $5.7 billion, all-cash deal for the Las Vegas company that will add some 52 casinos in the US to his entertainment empire. What Bloomberg Strategists say…
“Cooler-than-expected inflation data reinforces a pullback in discretionary spending that will be hard for stocks to ignore forever.”
—Tatiana Darie, Macro Strategist, 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 3:04 p.m. New York time The Nasdaq 100 rose 0.8% The Dow Jones Industrial Average was little changed The MSCI World Index rose 0.4% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1648 The British pound was little changed at $1.3440 The Japanese yen rose 0.2% to 159.27 per dollar Cryptocurrencies
Bitcoin fell 2.3% to $73,447.12 Ether fell 1.9% to $2,020.88 Bonds
The yield on 10-year Treasuries declined three basis points to 4.45% Germany’s 10-year yield declined three basis points to 2.96% Britain’s 10-year yield declined four basis points to 4.81% Commodities
West Texas Intermediate crude rose 0.6% to $89.21 a barrel Spot gold rose 1% to $4,500.62 an ounce ©2026 Bloomberg L.P.
