Stocks and Bonds Slip as Oil Ends Run of Losses: Markets Wrap
(Bloomberg) — Stocks joined bonds lower as oil prices halted their longest losing streak this year, with traders awaiting further progress in efforts to end the war in Iran.
A rally that put the S&P 500 at a striking distance of a record took a breather. Brent crude topped $100, snapping five days of declines. Higher energy costs stoked worries about inflation that could make the Federal Reserve lift rates. Treasuries extended losses after data showed US business activity rose at the fastest pace in more than five years. The dollar hit the highest since July.
The latest geopolitical developments remained center stage as investors look to a resolution in the Middle East as a risk-on catalyst after President Donald Trump flagged progress in US talks with Iran. The discussions were the first between the two countries since around mid-June, shortly after the signing of a short-lived truce.
Iranian President Masoud Pezeshkian was set to make his United Nations General Assembly speech on Wednesday. Iran has laid down “firm positions” for the reopening of the Strait of Hormuz, IRIB News reported.
While the latest talks between the two nations have raised hopes that an end to the conflict is on the horizon, it remains unclear if any progress has been made toward a formal agreement to reopen the Strait of Hormuz, according to Ian Lyngen at BMO Capital Markets.
“Should renewed hopes for a diplomatic breakthrough prove misplaced, a rebound in energy prices would bring a fresh round of selling pressure to Treasuries,” he said. “On the other hand, an extension of the energy selloff would reinforce the stabilizing bid for Treasuries.”
“Our base case is for energy disruption to remain relatively limited and an inflation shock that does not become sufficiently broad or persistent to derail growth,” said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office. “But the current conflict could still escalate and place further strain on energy supplies.”
Other geopolitical developments may also drive market swings, alongside renewed concerns over government debt and the sustainability of spending in artificial intelligence, she added.
Corporate Highlights:
Microsoft Corp. was upgraded to buy from hold at Stifel, in what represents a vote of confidence from one of the few Wall Street’s firms that were cautious on the stock after its lagging run this year. McDonald’s Corp. is earmarking roughly $8.5 billion to help franchisees implement a multiyear plan to serve better food, improve service and make restaurants easier to run. General Mills Inc. posted first-quarter sales growth that beat Wall Street expectations, as the company shifted its focus to launching new products after a wave of earlier price cuts. Royal Caribbean Cruises Ltd. agreed to buy a 50% stake in Sandals Resorts International for about $3 billion, a deal that will give the cruise operator access to its all-inclusive resorts across the Caribbean. SoftBank Group Corp. kicked off what’s set to be one of the largest corporate junk bond sales ever as the Japanese conglomerate offers record yields to entice investors into helping fund its unprecedented investments in artificial intelligence. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.3% as of 9:50 a.m. New York time The Nasdaq 100 fell 0.5% The Dow Jones Industrial Average fell 0.4% The Stoxx Europe 600 fell 0.4% The MSCI World Index fell 0.4% Currencies
The Bloomberg Dollar Spot Index rose 0.5% The euro fell 0.5% to $1.1396 The British pound fell 0.6% to $1.3261 The Japanese yen fell 0.5% to 158.13 per dollar Cryptocurrencies
Bitcoin fell 0.6% to $85,705.76 Ether fell 1.3% to $2,714.86 Bonds
The yield on 10-year Treasuries advanced seven basis points to 5.03% Germany’s 10-year yield advanced six basis points to 3.52% Britain’s 10-year yield advanced six basis points to 5.30% Commodities
West Texas Intermediate crude rose 1.6% to $91.97 a barrel Spot gold fell 1.6% to $4,289.23 an ounce ©2026 Bloomberg L.P.
