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May 27, 2026 - 19:23
5 minutes
(Bloomberg) — Wall Street traders sent stocks lower amid mixed signals about prospects for a US-Iran deal to end the war and revive energy flows through the key Strait of Hormuz.Following a blistering surge to all-time highs, the S&P 500 retreated. Big banks led losses in equities while high-flying chipmakers halted their rally. In a volatile session, US crude dropped below $90 a barrel. Bonds barely budged.President Donald Trump said he was “not satisfied” in negotiations with Iran, damping expectations for an imminent accord. The US denied an Iranian media report on a draft interim deal that said traffic through Hormuz could return to normal within a month of it coming into effect.Trump noted that no one nation would control the strait, pushing back on Iranian demands to manage the waterway. He didn’t indicate what steps the US would take to ensure free passage through Hormuz, which has been closed since the start of the war.A deal to reopen the energy chokepoint would likely unleash a barrage of barrels into the sorely undersupplied oil market. But key sticking points remain, including Tehran’s $24 billion in frozen assets.“When they behave properly and when they do what’s right, we’ll let them have their money,” Trump said on Iran.“The situation surrounding Iran remains highly fluid as negotiations continue toward a more durable peace agreement,” said Adam Turnquist at LPL Financial “A meaningful reopening of the Strait of Hormuz will likely be necessary for oil prices to move sustainably lower.”US Secretary of State Marco Rubio said that “we’ll see over the next few hours and days whether progress could be made. US Special Envoy Steve Witkoff, Jared Kushner and Vice President JD Vance “have been very involved,” he noted.“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.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. Bank of America Corp. expects second-quarter revenue from sales and trading to increase about 15% from a year ago while the economy remains resilient, according to Chief Executive Officer Brian Moynihan. Goldman Sachs Group Inc. and one of its units are poised to raise $9 billion of investment-grade bonds Wednesday, according to people with knowledge of the matter, adding to the $25 billion raised so far this year by the Wall Street firm. Boeing Co.’s Chief Executive Officer gave investors an optimistic forecast for this year and beyond, as the US planemaker raises production on its workhorse 737 Max jet, nears certification on long-delayed models and expects a windfall from defense spending. 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. Some of the main moves in markets:StocksThe S&P 500 fell 0.1% as of 1:22 p.m. New York time The Nasdaq 100 fell 0.4% The Dow Jones Industrial Average rose 0.4% The MSCI World Index fell 0.1% CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% The euro was little changed at $1.1624 The British pound fell 0.2% to $1.3421 The Japanese yen fell 0.2% to 159.55 per dollar CryptocurrenciesBitcoin fell 1.5% to $74,844.23 Ether fell 1.1% to $2,053.97 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% CommoditiesWest Texas Intermediate crude fell 4.5% to $89.68 a barrel Spot gold fell 1.4% to $4,447.01 an ounce ©2026 Bloomberg L.P.
