Finance

Major U.S. stock indexes trended higher as investors reacted favorably to signs of a potential peace deal between the United States and Iran. The optimistic diplomatic outlook prompted a rebound in high-beta and AI-linked equities, which had previously faced pressure from regional instability.

Crude oil benchmarks fell sharply, with U.S. crude dropping over 2% following reports that military strikes against Iran were canceled. This decline provided immediate relief to inflation-wary markets, though prices remain significantly higher than their levels prior to the start of the conflict.

The 10-year Treasury yield fluctuated around 4.5% as investors weighed cooling oil prices against persistent inflationary data. While earlier jobs reports had pushed yields higher, recent diplomatic developments led traders to adjust their expectations for the Federal Reserve's next interest rate hike toward the end of the year.