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April 17, 2026 – 11:58

(Bloomberg) — Equities are pushing higher as speculation grows that a deal to end the war between the US and Iran is getting closer, prompting traders to take on more risk after an extraordinary rally.

S&P 500 futures rose 0.2% after the benchmark notched back-to-back record highs. The index is on course for a third week of gains of more than 3%, a stunning reversal following mounting signs that the US and Iran have been looking to deescalate their conflict that has roiled energy markets. Optimism over artificial intelligence and robust earnings have added to the momentum.

Brent dropped 3.2% toward $96 a barrel after President Donald Trump claimed that Iran has made key concessions in negotiations with the US. The dollar headed for a February low. Global bonds were mixed, with the 10-year Treasury yield falling two basis points to 4.30%.

“Now that the dust appears to be settling on events in the Middle East, market attention will once again focus back on the fundamentals, in particular earnings given that the season has just started,” said Daniel Murray, deputy chief investment officer at EFG Asset Management. “Earnings expectations are buoyant, consistent with solid underlying macro trends.”

For all the optimism, the key transit route for about a fifth of global crude shipments remains all but shut under US and Iranian blockades. Some Gulf Arab and European leaders said that a US-Iran peace deal could take about six months to agree.

Brent continues to trade about a third higher since the conflict began in late February, with no clear indication of when flows through the Strait of Hormuz will resume. Bank of England policymaker Sarah Breeden warned that the war could trigger several market stresses at once.

“As we are heading closer and closer to May, the situation becomes serious,” said Andrea Gabellone, head of global equities at KBC Securities. “If no real traffic is seen by June at the latest, things will take a different turn.”

It took the S&P 500 just 11 days to lurch from an oversold reading to Thursday’s arrival in overbought territory. That has only been outpaced by a rally in 1982. Explanations for the abrupt change in momentum point to a combination of hedge unwinding, systematic buying and short covering by hedge funds in macro products.

Europe’s Stoxx 600 advanced 0.4% while an index of Asian shares snapped a three-day streak of wins. Netflix Inc. slumped 9% in US premarket trading after an underwhelming forecast. Alstom SA shares slid the most in over two years in Paris after the manufacturer withdrew financial guidance for this fiscal year.

In the UK, the yield on 10-year gilts eased two basis points to 4.83% after Thursday’s move higher. New details about Prime Minister Keir Starmer’s appointment of Peter Mandelson as US ambassador have rekindled doubts about his grip on power. The pound was little changed.

Corporate News:

A consortium including Bouygues Telecom, Iliad SA and Orange SA has entered exclusive negotiations to buy billionaire Patrick Drahi’s telecom company SFR. Netflix Inc. gave a forecast for the second quarter that fell short of analysts’ expectations, sending the shares tumbling in premarket trading. OnlyFans, the platform best known for adult content, is in advanced talks to sell a minority stake to Architect Capital in a deal that would value the British company at more than $3 billion. Apple Inc.’s marketing executive in charge of the Apple Watch, AirPods, health and smart home initiatives said he’s retiring. Some of the main moves in markets:

Stocks

The Stoxx Europe 600 rose 0.4% as of 10:55 a.m. London time S&P 500 futures rose 0.2% Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average rose 0.4% The MSCI Asia Pacific Index fell 0.9% The MSCI Emerging Markets Index fell 0.5% Currencies

The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.1% to $1.1794 The Japanese yen was little changed at 159.03 per dollar The offshore yuan was little changed at 6.8232 per dollar The British pound was little changed at $1.3534 Cryptocurrencies

Bitcoin rose 0.8% to $75,877.84 Ether rose 0.5% to $2,361.45 Bonds

The yield on 10-year Treasuries declined two basis points to 4.30% Germany’s 10-year yield declined one basis point to 3.02% Britain’s 10-year yield declined two basis points to 4.83% Commodities

Brent crude fell 3.2% to $96.16 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.

–With assistance from Neil Campling, Subrat Patnaik and Jan-Patrick Barnert.

©2026 Bloomberg L.P.