US Stocks Stall as Middle East Flare-Ups Lift Oil: Markets Wrap
(Bloomberg) — US stocks struggled to build on record gains as growing strains on the ceasefire between the US and Iran sent oil prices higher for a third straight day.
S&P 500 futures slipped 0.1% after the artificial-intelligence trade fueled a nine-day rally in the benchmark index. Brent rose 2.4% to top $98 a barrel. Bond yields advanced across most markets as crude prices stoked concerns about inflationary pressures. The dollar edged higher.
The cautious mood follows flare-ups in the Middle East that are testing a fragile truce between Washington and Tehran, with US forces intercepting ballistic missiles and drones aimed at neighboring countries and striking an Iranian command center in response. As talks between the parties dragged on, President Donald Trump said Iran has agreed it won’t have a nuclear weapon.
Traders are watching whether the S&P 500 can extend its winning streak to the longest in more than three decades. A narrow rally has seen technology stocks, and chipmakers in particular, leave the rest of the market far behind.
“I don’t think this is the top, there’s still room to run,” said Amanda Lyons, head of research at Energy Group Capital. “The fuel is just quietly shifting from earnings to excitement; that’s fine on the way up, it only matters when the music stops.”
Investors are also awaiting SpaceX’s disclosure of the terms of its initial public offering that is set to be by far the largest in history. Reuters reported that Elon Musk’s rocket launch, satellite and AI company aims to sell more than 550 million shares at $135 apiece for a $75 billion IPO.
The share sale forms part of a pipeline of potential offerings from high-profile tech companies in the coming months. AI rivals OpenAI and Anthropic PBC look to forge ahead with listings of their own, while Alphabet Inc. revealed plans for a record $80 billion equity offering on Monday.
“The IPO wave is a strong confidence indicator for markets,” said Nataliia Lipikhina, head of EMEA equity strategy at JPMorgan Private Bank. “We think there is enough capacity in the market to absorb them, and the renewed issuance pipeline is additive to the broader market story.”
Europe’s Stoxx 600 fell 0.4%, led lower by automakers. Marvell Technology Inc. rallied a further 9% in US premarket trading after Tuesday’s 33% surge. The gains came after Nvidia Corp.’s Jensen Huang predicted that the semiconductor and networking company would be the next business to hit a $1 trillion valuation.
Broadcom Inc. will offer investors another snapshot into AI spending when it reports after the close, with Bloomberg Intelligence expecting accelerating revenue from XPU chips and growing demand for networking.
Meanwhile, US President Donald Trump moved to rebuild his signature trade policy, proposing a new tariff of at least 10% on imports from 60 trading partners. The recommended duties are a result of an investigation into how trade partners handle goods allegedly produced by forced labor.
The yen remained below the key 160 level after remarks by Bank of Japan Governor Kazuo Ueda indicated there’s a good chance of a rate hike this month, though they weren’t as explicit as comments he made telegraphing the previous two increases.
What Bloomberg Strategists Say:
“A global backdrop of heightened trade tensions and elevated energy prices would hit the European economy the hardest given its reliance on exports and imported energy. Stocks in the region are therefore likely to further underperform.”
— Conor Cooper, Macro Squawk. Click here to read the full analysis.
Corporate News:
Palo Alto Networks Inc. shares fall in premarket trading after the security software company’s quarterly results failed to meet elevated buyside expectations. Partners Group Holding AG is capping withdrawals at one of its evergreen private equity funds amid heightened redemption pressure, as the investor anxiety that hit private credit vehicles shows signs of spilling over to other asset classes within private markets. Akzo Nobel NV shares fall as much as 22%, their steepest drop on record, after Nippon Paint and Sherwin-Williams abandoned efforts to acquire the Dutch paintmaker. Inditex SA’s sales growth picked up at the start of its second quarter, boosting confidence in the Zara owner’s resilience in the face of weakening consumer spending. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.4% as of 11:16 a.m. London time S&P 500 futures fell 0.1% Nasdaq 100 futures rose 0.1% Futures on the Dow Jones Industrial Average fell 0.3% The MSCI Asia Pacific Index rose 0.6% The MSCI Emerging Markets Index fell 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.1% to $1.1615 The Japanese yen was little changed at 159.80 per dollar The offshore yuan fell 0.1% to 6.7712 per dollar The British pound fell 0.1% to $1.3451 Cryptocurrencies
Bitcoin fell 0.5% to $67,180.87 Ether fell 1.1% to $1,882.73 Bonds
The yield on 10-year Treasuries advanced four basis points to 4.48% Germany’s 10-year yield advanced four basis points to 3.02% Britain’s 10-year yield advanced five basis points to 4.91% Commodities
Brent crude rose 2.5% to $98.36 a barrel Spot gold fell 0.6% to $4,462.52 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling and Subrat Patnaik.
©2026 Bloomberg L.P.
