Mediators say U.S.-Iran deal may be within reach
Key Takeaways
- •Negotiators from Pakistan, Egypt and Qatar have been discussing how shipping through the Strait of Hormuz would work under the proposed arrangement.
- •The White House is expected to wait until after President Trump meets with Israeli Prime Minister Benjamin Netanyahu before deciding on the proposal.
- •A possible agreement is being viewed as supportive for markets because it could reduce fears of disruption to crude shipments through the Strait of Hormuz.
- •The NASDAQ was slightly higher and had recovered above its 100-day moving average after falling much further earlier in the session.
- •Several AI-related stocks declined sharply, including SanDisk, Micron, Arm Holdings and Advanced Micro Devices.
Mediators involved in the Middle East conflict reportedly believe the United States and Iran are nearing an agreement that would revive a previously failed memorandum of understanding.
According to The Times of Israel, as cited by Fox News, negotiators from Pakistan, Egypt, and Qatar have been working to clarify how shipping through the Strait of Hormuz would operate under the proposed arrangement. The report cites an Arab official and another source familiar with the discussions.
Sources also said the White House is expected to wait until after President Trump meets with Israeli Prime Minister Benjamin Netanyahu on Tuesday before making any decision on the proposal.
A breakthrough would likely be viewed as positive for global markets, easing concerns about possible disruptions to energy supplies through the Strait of Hormuz, a key route for crude shipments. That is one reason investors tend to watch these talks closely: even without a final deal, changes in perceived risk around the strait can ripple quickly through oil and broader market sentiment. Such an outcome could weigh on crude oil prices while supporting risk assets if investors see the agreement as reducing the risk of a broader regional conflict.
In U.S. trading, the NASDAQ index was up 6.49 points, or 0.04%, at 24,941 and had moved back above its 100-day moving average of 24,755.38. The index had been down 351.08 points at session lows.
The S&P index was up 27 points, or 0.37%, at 7,440.
The Dow continued to outperform, rising 602 points, or 1.15%, to 52,816.
Treasury yields were lower, with the two-year yield down 5.8 basis points at 4.264% and the 10-year yield down 4.69 basis points at 4.594%.
The Federal Reserve is meeting today and will announce its rate decision tomorrow. The odds of a hike were back below the 30% level after trading close to 40% over the previous week or so.
Despite the broader rebound, several AI-related stocks remained sharply lower on the day, including SanDisk, which was down 13.42%.
SanDisk (SNDK): -$171.50 (-13.42%)
Coherent (COHR): -$32.09 (-11.83%)
Lumentum (LITE): -$72.20 (-10.14%)
Nebius Group (NBIS): -$15.79 (-8.40%)
Micron (MU): -$75.21 (-8.35%)
Lam Research (LRCX): -$23.81 (-8.17%)
Arm Holdings (ARM): -$19.63 (-7.37%)
Applied Materials (AMAT): -$36.47 (-7.06%)
Advanced Micro Devices (AMD): -$33.17 (-6.70%)
Astera Labs (ALAB): -$18.20 (-6.44%)
Credo Technology (CRDO): -$12.54 (-6.02%)
Marvell Technology (MRVL): -$10.92 (-5.77%)
KLA Corp. (KLAC): -$10.83 (-5.33%)