Stocks Fall Even as Oil Slides on US-Iran Talks: Markets Wrap
(Bloomberg) — US stock futures fell, finding little support from lower oil prices as signs of diplomatic headway emerged between the US and Iran.
The S&P 500 was set for a weaker open after a long weekend, with contracts dipping 0.2%. Brent crude dropped 1.7% toward $79 a barrel as negotiators for Tehran and Washington agreed on a roadmap for a final deal. The dollar edged 0.1% higher. Treasuries fell across the curve following Friday’s US holiday.
Traders also followed the latest upheaval in UK politics after Prime Minister Keir Starmer announced his resignation outside 10 Downing Street on Monday. The pound trimmed losses after briefly touching a 2026 low, while gilts steadied after a two-day slide.
Oil traders took comfort from evidence of progress in Middle East talks even as President Donald Trump threatened to strike Iran if Hezbollah militants in Lebanon continue to attack Israel. The warring sides established a communication line to avoid incidents, with the aim of ensuring safe passage for commercial vessels through the Strait of Hormuz.
“Even during the midst of the conflict in the Middle East, equities still priced a positive outcome,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “It seems logical that markets don’t rally too hard on something which they had already priced to a fair degree.”
In the UK, the departure of Starmer is putting Britain on course for its seventh premier in a decade and paving the way for Andy Burnham to replace him. The question for investors is the impact on the UK’s finances if the former mayor of Manchester were to become prime minister.
“Markets would be watching for Burnham’s pick of the Chancellor,” wrote Mohit Kumar at Jefferies. “Fear is that Burnham’s policies are left-leaning and if the new Chancellor is not credible, it would raise concerns over deficits and borrowing.”
Starmer said nominations for a new Labour leader will open July 9 and that a contest will be finalized by Sept. 1. He will remain in office until the process is complete.
SpaceX shares slid as much as 4.6% in premarket trading, putting the stock on pace for a third straight loss. Getty Images Holdings Inc. soared more than 300% after inking a display partnership with ChatGPT-owner OpenAI.
Bond traders, recently forced to reposition for the possibility of higher interest rates ahead, are looking to Thursday’s US personal consumption expenditures price index for a read on whether the market’s hawkish stance is warranted.
Forecasters expect the index, the Federal Reserve’s favorite inflation gauge, to show acceleration on both a monthly and year-over-year basis in May.
What Bloomberg Strategists Say:
“UK markets are understandably little changed by Prime Minister Keir Starmer’s resignation. The move was widely anticipated. That leaves markets focused on who emerges as the next prime minister. Andy Burnham is the clear front-runner and markets seem rather settled by that, leaving UK assets more at the mercy of the Fed.”
— Skylar Montgomery Koning, macro strategist. Click here for the analysis.
Corporate News:
Building materials group CRH Plc. is close to its biggest deal ever to acquire competitor Arcosa Inc., the Financial Times reports, citing people familiar with the matter. EasyJet Plc has rejected three separate offers from Castlelake LP, prompting the investment firm to take its latest proposal that values the budget carrier at about £4.74 billion ($6.3 billion) directly to shareholders. Shares rose 2.6% in London. The German and French governments are set to hold equal stakes in KNDS NV, one of Europe’s most important defense companies, as it gears up for an initial public offering in the near future. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.2% as of 10:43 a.m. London time S&P 500 futures fell 0.2% Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index rose 0.9% The MSCI Emerging Markets Index rose 0.9% Currencies
The Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.1% to $1.1457 The Japanese yen fell 0.3% to 161.75 per dollar The offshore yuan was little changed at 6.7772 per dollar The British pound was little changed at $1.3227 Cryptocurrencies
Bitcoin rose 0.4% to $64,037.98 Ether rose 1.5% to $1,744.33 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.48% Germany’s 10-year yield declined one basis point to 2.97% Britain’s 10-year yield was little changed at 4.84% Commodities
Brent crude fell 1.9% to $79.06 a barrel Spot gold rose 1.3% to $4,209.12 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Subrat Patnaik.
©2026 Bloomberg L.P.
