Stocks Rise on Trump’s Iran Remarks, AI Optimism: Markets Wrap
(Bloomberg) — A rebound on Wall Street drove stocks to all-time highs as President Donald Trump said talks with Iran are continuing at a rapid pace, with the market also rising on renewed artificial-intelligence enthusiasm.
Hopes for a diplomatic way out of the war sent the S&P 500 around 7,600. In a tech-led advance, the gauge saw its eighth straight gain, the longest winning run since May 2025. US crude pared its rally to $92 as Trump also said Israel and Hezbollah agreed to stop attacking each other.
Financial markets continued to get whipsawed by multiple geopolitical headlines after an escalation in Middle East hostilities jeopardized peace negotiations.
Heightened violence in Lebanon in recent days risked upending indirect talks between Washington and Tehran on extending a ceasefire agreement. Earlier Monday, Iran said it would suspend negotiations with the US in protest over Israel’s offensive.
“A flare-up in geopolitical tensions caused some wobbles early, but Wall Street’s tech-led, teflon rally managed to power on,” said Kyle Rodda at Capital.com.
“Expectations for a US-Iran agreement remain fluid,” said Jason Pride and Michael Reynolds at Glenmede. “Recent strikes and conflicting statements from both sides highlight that key details remain unresolved.”
While progress toward a deal appears likely over time, conditions in the Strait of Hormuz remain fragile and the direction of energy prices will continue to play a key role in shaping the near-term outlook for inflation and interest rates, the Glenmede strategists added.
US manufacturing activity expanded in May at the fastest pace in four years, bolstered by a pickup in new orders and production.
The Institute for Supply Management’s data also indicated materials’ costs continued to rise sharply for producers, with the group’s price gauge easing some, but remaining close to levels not seen since 2022.
Combined with the renewed advance in oil, the report added to speculation the Federal Reserve’s next move on interest rates will be a hike.
Corporate Highlights:
Nvidia Corp. is entering the PC market with a new chip aimed at loosening the stranglehold of Intel Corp. technology in that arena and modernizing the machines for the AI era. Software stocks rallied after Nvidia CEO Jensen Huang rebuffed concerns that the industry is at risk of being disrupted by more advanced AI tools. Google parent Alphabet Inc. is raising $80 billion in equity offerings, including an investment deal with Berkshire Hathaway Inc., to help raise money for its ambitious AI spending plans. Hewlett Packard Enterprise Co. gave an outlook for annual sales that topped estimates, citing massive growth in demand for the company’s servers and networking that it expects to continue through next year. Anthropic PBC has confidentially submitted draft paperwork for a public listing, potentially leapfrogging longtime rival OpenAI in the race toward a Wall Street debut as soon as this fall. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.3% as of 4 p.m. New York time The Nasdaq 100 rose 0.6% The Dow Jones Industrial Average was little changed The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.2% to $1.1633 The British pound was little changed at $1.3459 The Japanese yen fell 0.3% to 159.68 per dollar Cryptocurrencies
Bitcoin fell 3% to $71,456.45 Ether fell 0.2% to $2,000.9 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.46% Germany’s 10-year yield advanced seven basis points to 3.00% Britain’s 10-year yield advanced nine basis points to 4.90% Commodities
West Texas Intermediate crude rose 5.8% to $92.40 a barrel Spot gold fell 1.3% to $4,483.39 an ounce ©2026 Bloomberg L.P.
