Finance

Equity indexes bounced back from their lowest intraday levels following reports that American and Iranian negotiators are discussing a phased deal to reopen the Strait of Hormuz. Despite the potential progress toward reducing geopolitical supply chokepoints, energy commodities remained elevated, with Brent crude holding above $105 per barrel. The volatility highlighted investor concerns over persistent energy-driven inflationary pressures.

The S&P 500 and Nasdaq Composite concluded a volatile trading session virtually unchanged, while the Dow Jones Industrial Average fell. Analysts note that overall market breadth has turned increasingly thin, with less than a third of S&P 500 constituent stocks currently trading above their 50-day moving averages. This dynamic reflects a market highly dependent on a small group of large-cap equities to sustain index levels.

Fresh macroeconomic reports indicated continued resilience in the domestic economy, with weekly jobless claims dropping to 196,000, which came in well below consensus expectations. Additionally, strong manufacturing PMI data topped forecasts and intensified investor expectations that interest rates will remain higher for longer. Central bank officials pointed to this economic strength as justification for a potentially more aggressive monetary stance.