Conflicting US-Iran signals cause the stock rally to falter – US Market Wrap

Wall Street traders left equities shaky amid conflicting signals about the prospects for a settlement to stop the war in Iran and restart petroleum flows through the critical Strait of Hormuz. While stocks remained at all-time highs, the S&P 500 finished barely changed. Banks led losses on Wednesday, while a key chipmaker index sank. Meta surged after announcing plans to sell artificial intelligence chatbot subscriptions to offset spending. US crude settled below $89 per barrel.
Trump stated that he was not satisfied with negotiations with Iran, dampening hopes for a rapid breakthrough. The United States refuted an Iranian media story regarding a draft interim agreement that stated that traffic through the Strait of Hormuz might resume within a month of its implementation.
Trump emphasized that no single nation would dominate the canal, underscoring a major stumbling block in ending the nearly three-month confrontation. He did not specify what steps the US would take to secure the free passage of vessels. Trump also talked down the prospect of Iranian sanctions lifting.
According to US Secretary of State Marco Rubio, we’ll see over the next few hours and days whether progress can be made. US Special Envoy Steve Witkoff, Jared Kushner, and Vice President JD Vance have been very involved,” he stated.