This content was published on
May 27, 2026 - 18:03
5 minutes
(Bloomberg) — Wall Street traders halted a rally in stocks as optimism over a resolution of hostilities in the Middle East waned, with the White House pushing back on the existence of a draft deal to revive the Strait of Hormuz.Following a blistering advance to all-time highs, the S&P 500 edged lower. US crude pared its decline, trading around $90. The US denied an Iranian state television report about a draft interim peace agreement that said traffic through the key waterway could return to normal within a month of it coming into effect.“Just because Iran’s state media reported something doesn’t mean the deal is done,” said Brian Jacobsen at Annex Wealth Management.Traders have been on high alert for clues on the status of talks that could lead to a Hormuz reopening. Traffic through the strait has shriveled since the conflict erupted, causing energy prices to soar while rattling economies, companies and markets.Meantime, President Donald Trump said Iran would not get sanctions relief in exchange for giving up their highly enriched uranium, PBS News reported.“They’re gonna give up their highly enriched uranium not for sanctions, relief. No, no, not at all,” Trump told PBS.“The stock market has enough confidence that a resolution with Iran will eventually come to light, even if it’s not immediate,” said Alexander Guiliano at Resonate Wealth Partners. “While it may seem like stocks have moved too fast, we saw a garden variety correction only two months ago, which helped to reset sentiment and pave the way for this most recent rally.”Veteran market strategist Ed Yardeni dismissed concerns that US stocks are in a bubble, arguing the recent advance was driven by solid corporate profits rather than speculation.“The big difference is earnings,” Yardeni told Bloomberg Television’s Surveillance. He coined the term “FEMO” — fabulous earnings momentum — to distinguish the current rally from “FOMO,” or fear of missing out, which he said is based on hope and hype rather than fundamentals.Earnings growth powered by the AI boom will drive further gains in stocks, Goldman Sachs Group Inc. strategists led by Ben Snider said as they increased their year-end target for the S&P 500 to 8,000 points. The gauge currently trades near 7,500.“Continued earnings growth should drive continued equity market upside,” they wrote. “The increased return forecast reflects increased estimates for S&P 500 earnings following an exceptionally strong first-quarter reporting season.”Corporate Highlights:While software stocks rebound from the artificial intelligence-driven wipeout earlier this year, Salesforce Inc. hasn’t really benefited. But its earnings after the close Wednesday could pull the company’s shares out of their malaise. Boeing Co. has successfully completed a so-called capstone review with the Federal Aviation Administration to further increase production of its workhorse 737 Max to 47-jet monthly output, a key step for the planemaker to improve profitability and generate cash. Lululemon Athletica Inc. agreed to resolve a long-running dispute with founder Chip Wilson by appointing three new members to a board of directors the billionaire has campaigned against for months. Blackstone Inc. is providing as much as $1.3 billion in financing to Apogee Therapeutics Inc. to help the biotech company advance a potential competitor to the blockbuster drug Dupixent. Bath & Body Works Inc. reported first-quarter results that beat analyst estimates and said Chief Financial Officer Eva Boratto will step down from her role effective June 12. Some of the main moves in markets:StocksThe S&P 500 fell 0.2% as of 12 p.m. New York time The Nasdaq 100 fell 0.5% The Dow Jones Industrial Average rose 0.3% The Stoxx Europe 600 was little changed The MSCI World Index fell 0.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1629 The British pound fell 0.1% to $1.3427 The Japanese yen fell 0.1% to 159.48 per dollar CryptocurrenciesBitcoin fell 1.1% to $75,194.07 Ether fell 0.4% to $2,068.23 BondsThe yield on 10-year Treasuries was little changed at 4.48% Germany’s 10-year yield was little changed at 2.99% Britain’s 10-year yield declined two basis points to 4.86% The yield on 2-year Treasuries was little changed at 4.03% The yield on 30-year Treasuries was little changed at 5.01% CommoditiesWest Texas Intermediate crude fell 4.1% to $90.05 a barrel Spot gold fell 1.6% to $4,436.11 an ounce ©2026 Bloomberg L.P.
