Reports of the US-Iran Deal Send Stocks to All-Time Highs – US Market Wrap

Wall Street traders sent equities to all-time highs, bonds gained, and an oil rally faded amid expectations of a diplomatic breakthrough in the three-month battle that has shook global markets.
Equities rose on news that the United States and Iran had achieved a tentative agreement to extend a cease-fire by 60 days and begin further discussions on Tehran’s nuclear program. The S&P 500 is on a six-day winning streak. Brent crude settled below $94 per barrel. Treasury yields fell throughout the curve. The dollar declined against every developed-world currency.
Hopes for a truce renewal were overshadowed by concerns over recent clashes in the Persian Gulf, which emphasized the difficulty of negotiating a peace accord that would restore energy flows. The effective closing of the Strait of Hormuz since the beginning of the war has hindered oil supply, raising fuel prices and inflation.
Higher energy costs have increased price pressures, heightening concerns that the Fed will be obliged to raise interest rates. US consumer expenditure increased in April, with annual inflation reaching its highest level since 2023. Meanwhile, the economy grew at a slower-than-expected 1.6% annual rate in the first quarter.
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