(Bloomberg) — Wall Street kicked off the holiday-shortened week with stocks joining bonds higher as hopes for a peace deal between the US and Iran overshadowed military strikes in the Persian Gulf.<\/p>\n
Most Read from Bloomberg<\/p>\n
Expectations of an agreement drove the S&P 500 to a record, with chipmakers leading the charge. Micron Technology Inc. topped $1 trillion in value. Treasury yields fell as concerns over a flare-up in inflation eased, making traders pare back their wagers on near-term Federal Reserve rate hikes. Brent rose to around $100 after sinking more than 7% on Monday.<\/p>\n
The US is touting progress toward a deal to end the nearly three-month war, with President Donald Trump saying talks to extend a ceasefire and reopen the Strait of Hormuz are proceeding. Secretary of State Marco Rubio cautioned that any accord would likely take a few days to finalize.<\/p>\n
Security in the energy waterway remained unclear after the two sides exchanged strikes overnight and US Central Command pushed back on reports that suggested the military was helping escort vessels.<\/p>\n
\u201cMarket participants are placing their bets on peace and subsequently buying into very strong equity fundamentals,\u201d said Kyle Rodda at Capital.com.<\/p>\n
\u201cWhile we\u2019d like to share the optimism, there have been enough setbacks in the process of crafting an agreement between Washington and Tehran that we\u2019ll remain cautious until there is more tangible progress,\u201d said Ian Lyngen at BMO Capital Markets.<\/p>\n
Traders shouldn\u2019t expect a deal to immediately send the S&P 500 running to 8,000, but the reality is that removing distractions would allow investors to focus on earnings and growth, boosting the market potential, according to Tom Essaye at The Sevens Report. The gauge closed at 7,519.12 Tuesday.<\/p>\n
\u201cJust because a ceasefire isn\u2019t an immediate catalyst, it will still be a steady positive influence on stocks and bonds as long as growth stays solid and inflation doesn\u2019t spike,\u201d he added.<\/p>\n
Data showed US consumer confidence edged down in May as views of current economic conditions settled back amid rising prices due to the war. The Conference Board\u2019s gauge fell to 93.1 after an upward revision to the prior month. The median economist estimate was 92.<\/p>\n
\u201cGiven the current pricing pressures, we would have expected a more dramatic decline in confidence,\u201d said Jeffrey Roach at LPL Financial. \u201cHowever, consumers feel the employment situation will improve by the end of the year.\u201d<\/p>\n
Corporate Highlights:<\/p>\n
Micron Technology Inc. jumped after UBS Group AG raised its price target on the chipmaker to a Street-high view of $1,625.<\/p>\n
Qualcomm Inc. reached a deal with TikTok owner ByteDance Ltd. to supply chips for artificial-intelligence data centers, according to people familiar with the matter, marking a key win for a company trying to expand from smartphone processors into AI infrastructure.<\/p>\n
Space and satellite-related stocks rallied as investor enthusiasm around the industry intensified after Elon Musk\u2019s SpaceX filed for a public offering last week.<\/p>\n
NASA picked Jeff Bezos\u2019 Blue Origin, Firefly Aerospace and other space firms to send robotic landers, rovers and even drones to the moon as part of the Trump administration\u2019s efforts to jumpstart a lunar base before the end of the decade.<\/p>\n
Eli Lilly & Co. is on a record spending spree, announcing acquisitions worth more than $20 billion so far in 2026 as the drugmaker expands beyond its blockbuster obesity franchise.<\/p>\n
BP Plc unexpectedly fired Chairman Albert Manifold just months into the job due to serious concerns about \u201cgovernance standards, oversight and conduct,\u201d prolonging a period of turmoil at the UK oil major.<\/p>\n
What Bloomberg Strategists say…<\/p>\n
\u201cUS equities are caught in a feedback loop of Iran peace hopes and AI earnings that will require a steady supply of positive news to counteract crowded bullish positioning.\u201d<\/p>\n
\u2014Michael Ball, Macro Strategist, Markets Live. For the full analysis, click here.<\/p>\n
Some of the main moves in markets:<\/p>\n
Stocks<\/p>\n
The S&P 500 rose 0.6% as of 4 p.m. New York time<\/p>\n
The Nasdaq 100 rose 1.8%<\/p>\n
The Dow Jones Industrial Average fell 0.2%<\/p>\n
The MSCI World Index rose 0.3%<\/p>\n
Currencies<\/p>\n
The Bloomberg Dollar Spot Index rose 0.1%<\/p>\n
The euro was little changed at $1.1633<\/p>\n
The British pound fell 0.4% to $1.3451<\/p>\n
The Japanese yen fell 0.3% to 159.31 per dollar<\/p>\n
Cryptocurrencies<\/p>\n
Bitcoin fell 1.6% to $75,970.06<\/p>\n
Ether fell 1.6% to $2,073.74<\/p>\n
Bonds<\/p>\n
The yield on 10-year Treasuries declined seven basis points to 4.49%<\/p>\n
Germany\u2019s 10-year yield advanced three basis points to 2.98%<\/p>\n
Britain\u2019s 10-year yield declined two basis points to 4.88%<\/p>\n
Commodities<\/p>\n
West Texas Intermediate crude fell 3.3% to $93.43 a barrel<\/p>\n
Spot gold fell 1.4% to $4,507.53 an ounce<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92026 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Wall Street kicked off the holiday-shortened week with stocks joining bonds higher as hopes for a…\n","protected":false},"author":2,"featured_media":696629,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[4536,29021,45,49,48,5897,254139,50078,39081,862,7554,252921,19093],"class_list":["post-696628","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bloomberg","tag-bmo-capital-markets","tag-business","tag-ca","tag-canada","tag-iran","tag-jeffrey-roach","tag-micron-technology-inc","tag-peace-deal","tag-president-donald-trump","tag-sp-500","tag-secretary-of-state-marco-rubio","tag-stocks-and-bonds"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/696628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=696628"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/696628\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/696629"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=696628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=696628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=696628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}