Stocks Stall as Oil Swings Ahead of US-Iran Talks – US Market Wrap

Wall Street traders bracing for talks between the US and Iran halted a rally in stocks as oil whipsawed, with the negotiations set to dictate the path ahead for a fragile ceasefire.

While the S&P 500 posted its best week since November, the index lost momentum after a seven-day advance. Earlier gains were supported by inflation data that met expectations. In a volatile session, US crude settled below $97. Treasury yields rose, while the dollar was little changed.

Trump stepped up pressure on Iran to reach a deal in Pakistan this weekend, with reports the US is preparing military options if talks fail. While the two-week ceasefire largely held across the Middle East, the continued closure of the Strait of Hormuz and clashes between Israel and Hezbollah in Lebanon risk complicating negotiations.

Investors also assessed the first inflation snapshot of the war-driven surge in energy costs. While headline prices rose the most since 2022, the core measure remained relatively subdued.

Earnings season begins Monday with Goldman Sachs, followed by JPMorgan, Citigroup, Wells Fargo, Bank of America and Morgan Stanley later in the week, with results expected to benefit from elevated market volatility.