Stock Markets Rally on Iran Peace Hopes Despite Middle East Uncertainty
US stock markets gained ground Thursday as traders reacted to reports of narrowed gaps in US-Iran conflict negotiations, though continued geopolitical tensions and elevated oil prices remain key concerns for investors.
Market Recovery on Diplomatic Hopes
The Dow Jones Industrial Average rose to a record close Thursday as oil prices and Treasury yields were volatile, with traders hoping for a resolution to the Middle East conflict, gaining 276.31 points for a closing record of 50,285.66. The S&P 500 advanced 0.17% to 7,445.72, while the Nasdaq Composite increased 0.09% to end at 26,293.10.
Oil and Bond Market Dynamics
West Texas Intermediate futures declined almost 2% to close at $96.35 per barrel, while Brent crude dropped more than 2% to close at $102.58 per barrel. Sources citing a senior Iranian official said that while no deal has been made, "gaps have narrowed," with remaining contentions focusing on Iran's uranium enrichment and its control over the Strait of Hormuz.
Tech and Consumer Resilience
Total card spending per household was up a solid 4.8% on a year-over-year basis for the week ending May 16, down from 5.5% in the prior week, with spending excluding gas up 3.5%, decelerating from 4.1% in the previous week.