This content was published on
May 27, 2026 - 20:29
5 minutes
(Bloomberg) — Wall Street traders sent stocks wavering 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 fluctuated. Banks led losses in equities while a closely watched gauge of chipmakers fell. 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 asserted that no one nation would control the strait, highlighting a key sticking point in resolving the war. He didn’t indicate what steps the US would take to ensure free passage of vessels. The president also downplayed the possibility of Iranian sanctions relief.“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.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 slightly above 7,500.Corporate Highlights:Meta Platforms Inc. is selling consumer subscriptions to its Meta AI chatbot for the first time, a key step toward building a business that would help offset hundreds of billions of dollars in artificial intelligence investments by the company. Wall Street banks are predicting another banner quarter for their trading desks. Bank of America Corp. expects second-quarter revenue from sales and trading to increase about 15% from a year ago, Chief Executive Officer Brian Moynihan said Wednesday. And JPMorgan Chase & Co. CEO Jamie Dimon said markets revenue at his bank could rise 11%, which would make it the second-best quarter ever for that business. 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 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 was little changed as of 2:27 p.m. New York time The Nasdaq 100 was little changed The Dow Jones Industrial Average rose 0.4% The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% The euro was little changed at $1.1624 The British pound fell 0.1% to $1.3426 The Japanese yen fell 0.2% to 159.54 per dollar CryptocurrenciesBitcoin fell 1.6% to $74,764.13 Ether fell 1.3% to $2,048.85 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 5.5% to $88.69 a barrel Spot gold fell 1.2% to $4,455.16 an ounce ©2026 Bloomberg L.P.
