Finance

Major U.S. stock indexes and futures rallied after President Trump signaled that military strikes against Iran were canceled in favor of ongoing peace talks. Market sentiment improved on reports that a draft deal could reopen the Strait of Hormuz, providing a significant boost to global risk assets and chipmaker stocks.

Crude oil prices fell more than 4% today, with Brent crude dropping toward $86 per barrel as the prospect of a Middle East peace deal reduced supply concerns. This retracement comes after a period of high volatility where energy costs had significantly contributed to global inflationary pressures.

The 10-year U.S. Treasury yield fell approximately 10 basis points to hover near 4.47% as geopolitical de-escalation outweighed concerns over a May Producer Price Index increase of 1.1%. While headline inflation rose to 4.2%, the cooling energy outlook has slightly eased immediate pressure on the Federal Reserve to accelerate rate hikes.