Stocks Fall as Hormuz Doubts Lift Oil and Yields: Markets Wrap
(Bloomberg) — A rebound in US equities faded while oil and bond yields rose as traders waited to see whether hopes of a US-Iran peace agreement would translate into tangible progress.
S&P 500 futures fell 0.3% after Nvidia Corp.’s earnings failed to ignite further gains in the artificial intelligence trade. Brent climbed 2% to above $107 a barrel. Iran’s Supreme Leader Mojtaba Khamenei said the country must keep its near-weapons-grade uranium, Reuters reported, tempering optimism that the warring sides were moving closer to a deal.
Equities have swung between gains and losses in recent days as the boost from stellar earnings starts to wane and global bond yields test multiyear highs. As fears mount that a lengthy disruption to oil supplies would leave policymakers little choice but to raise interest rates, stocks are again taking direction from prospects for a lasting agreement in the Middle East.
“Investors keep being pushed around like a ball in a pinball machine,” said Joachim Klement, head of strategy at Panmure Liberum. “The ever-changing news on Iran prevents equity markets from finding a direction, but ensures that bonds price in ever higher inflation.”
Treasuries fell across the curve. The 10-year yield rose two basis points to 4.61%, with JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon warning that interest rates may climb much further from current levels.
The downbeat tone in US markets contrasted with buoyant optimism in Asia, where a key tech gauge rose the most in six weeks.
LG Electronics Inc. and Hyundai Mobis Co. both surged in Seoul after Nvidia CEO Jensen Huang touted new opportunities in robots and automated vehicles. SoftBank Group Corp. jumped 20% as two companies backed by the Japanese investor — OpenAI and SB Energy Corp. — were said to be preparing for initial public offerings. Chipmakers tracked Wednesday’s gains in US peers.
“The rally in Asia has been supported by very strong momentum in technology, particularly around the current reality of AI demand,” said Francisco Simón, European head of strategy at Santander Asset Management. “Looking ahead, investors also continue to see structural growth potential linked to the future evolution of AI, including companies that may emerge as leaders.”
Nvidia shares fell 0.2% in premarket trading. Intuit Inc. sank 13% after the software company said it planned to reduce its workforce by about 17%. Tesla Inc. advanced 1.2% after Elon Musk’s SpaceX publicly filed for an initial public offering.
In the latest economic data, initial jobless claims fell more than expected in the week through May 16. Investors are also getting a reading on business activity in major economies against a backdrop of rising energy costs.
The data compiled by S&P Global are closely watched as they arrive early in the month and are good at revealing trends and turning points.
In the UK, businesses posted the first decline in output in over a year as the Iran shock and a mounting rebellion against Prime Minister Keir Starmer hit activity in the services sector. In the euro area, activity shrank at the quickest pace in 2 1/2 years.
Corporate Highlights:
Stellantis NV will focus investments on four core brands in a broad reset to boost profitability, with storied marques like Chrysler, Alfa Romeo and Opel relegated to smaller roles. Walmart Inc. warned that fuel costs are squeezing the company’s bottom line and could lead to higher prices for shoppers. AvalonBay Communities Inc. and Equity Residential agreed to merge in an all-stock transaction that combines two of the biggest apartment real estate investment trusts. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said the Wall Street giant will likely hire more artificial intelligence specialists and fewer traditional bankers as the adoption of the technology accelerates. Intuit Inc. is cutting about 17% of its staff, or about 3,000 workers, a move to trim costs while the financial software company invests in artificial-intelligence products. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.3% as of 8:33 a.m. New York time Nasdaq 100 futures fell 0.4% Futures on the Dow Jones Industrial Average fell 0.3% The Stoxx Europe 600 fell 0.4% The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1602 The British pound was little changed at $1.3422 The Japanese yen fell 0.1% to 159.14 per dollar Cryptocurrencies
Bitcoin fell 0.7% to $77,140.13 Ether fell 1% to $2,113.8 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.61% Germany’s 10-year yield advanced one basis point to 3.11% Britain’s 10-year yield declined one basis point to 4.97% Commodities
West Texas Intermediate crude rose 2.6% to $100.77 a barrel Spot gold fell 0.6% to $4,514.74 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Macarena Muñoz.
©2026 Bloomberg L.P.
