Stocks Turn Positive for 2026 as Deal Hopes Offset Geopolitical Risks – US Market Wrap
US equities climbed to session highs and moved back into positive territory for 2026 as renewed hopes for a potential deal with Iran helped offset ongoing geopolitical tensions, even as the conflict entered its seventh week.
The S&P 500 rose 1% to its highest level since late February. Brent crude gained 3% to around $98 a barrel, though it pared earlier advances. Goldman Sachs shares fell 1.9% after weaker fixed-income, currency, and commodities revenue overshadowed strong performance in equities, marking a subdued start to earnings season.
Markets extended gains after President Donald Trump said Iran had reached out to resume negotiations, despite a recent breakdown in talks and the US naval blockade of the Strait of Hormuz. However, there has been little confirmation of progress, with Iran blaming the US for stalled discussions and no clear indication that talks have resumed.
As earnings season gets underway, investor focus is shifting toward corporate guidance, particularly around risks tied to the ongoing war, the evolving impact of artificial intelligence, and concerns in private credit markets. Expectations remain constructive, with analysts forecasting roughly 12% annual earnings growth for the S&P 500 in the first quarter.
