This content was published on
May 29, 2026 - 03:54
5 minutes
(Bloomberg) — Stocks scaled to a record and oil dropped after the US and Iran reached a tentative deal to extend their ceasefire, pending President Donald Trump’s sign-off.The MSCI All Country World Index, the broadest measure of global equities, climbed 0.3% to an all-time high as easing tensions in the Middle East fueled expectations for lower oil prices and stronger economic growth. Asian shares jumped 1.4%, leaving them just shy of a record.A touch of caution came with Nasdaq 100 Index futures slipping 0.2%, after the underlying gauge closed at a new peak. The technology sector remained in focus with SpaceX lowering its IPO valuation target to at least $1.8 trillion, while Dell Technologies Inc. surged almost 40% in extended trading on its sales outlook.Brent crude dropped 0.6% to about $93.10 a barrel on Friday, following a proposed deal to extend the ceasefire by 60 days and launch further talks on Tehran’s nuclear program. The commodity has dropped 10% this week on hopes the three-month conflict may be nearing a resolution. President Donald Trump has yet to agree to the terms.The yen was steady around 159.30 per dollar after Tokyo’s key inflation gauge unexpectedly cooled for a sixth straight month. Treasuries held their gains from the US session, while the dollar was little changed after Thursday’s losses.Optimism over a ceasefire extension outweighed concerns about clashes in the Persian Gulf, as investors bet a truce may ease disruptions to energy flows. The closure of the Strait of Hormuz since the war began has curbed oil shipments and stoked inflation fears, with markets now eagerly watching for any signs the vital corridor may reopen.“The market is looking for an excuse to trend higher,” Pooja Malik, Nipun Capital CIO, said in an interview with Bloomberg Television. “Given that we have a crowded trade with rising risk of inflation and interest rate hikes, any small shift in sentiment could cause a rapid unwinding of this trade.”Both countries have previously hailed progress, with Trump repeatedly indicating the US was close to securing an agreement — only for the stalemate to drag on.When asked if an interim deal had been clinched, Treasury Secretary Scott Bessent would only say “the teams have been going back and forth.” He insisted Trump’s three “red lines” — reopening Hormuz, Iran turning over highly enriched uranium and ending its nuclear program — remained necessary for a pact.“Even if it is only a 60-day agreement to allow a resumption of traffic in the Strait, there should be a relief rally, as serious supply dislocations are approaching rapidly,” said veteran strategist Louis Navellier.Optimism toward artificial-intelligence stocks has helped equities rally to new highs, placing the S&P 500 Index on track for a ninth straight week of gains — a streak matched only four times since 1985. Asian shares are also set for a second week of gains.At the same time, higher energy costs have fueled price pressures, raising concerns the Federal Reserve would be forced to lift interest rates. US consumer spending edged up in April, with annual inflation accelerating to the highest since 2023. Meantime, the economy expanded in the first quarter at a 1.6% annualized pace, slower than previously estimated.“The economy is still expanding, but hotter inflation limits the Fed’s flexibility and pushes rate cuts further out,” said Gina Bolvin at Bolvin Wealth Management Group. “This is a more difficult environment for investors because the growth story is cooling just as inflation is heating back up.”Corporate Highlights:Anthropic PBC raised $65 billion in a funding round that valued the artificial intelligence company at $965 billion including the new investment, eclipsing rival OpenAI’s value for the first time. Pfizer Inc. and China’s Innovent Biologics Inc. signed a global agreement worth as much as $10.5 billion to develop cancer drugs. Futu Holdings Ltd. said mainland Chinese accounted for 20% of its first-quarter revenue and 17% of total client assets. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 10:52 a.m. Tokyo time Japan’s Topix rose 1.2% Australia’s S&P/ASX 200 rose 1.1% Hong Kong’s Hang Seng rose 0.6% The Shanghai Composite was little changed Euro Stoxx 50 futures were little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1647 The Japanese yen was little changed at 159.32 per dollar The offshore yuan was little changed at 6.7704 per dollar The Australian dollar was little changed at $0.7161 CryptocurrenciesBitcoin was little changed at $73,418.23 Ether fell 0.4% to $2,003.94 BondsThe yield on 10-year Treasuries declined one basis point to 4.44% Japan’s 10-year yield declined 4.5 basis points to 2.645% Australia’s 10-year yield declined six basis points to 4.83% CommoditiesWest Texas Intermediate crude fell 0.9% to $88.08 a barrel Spot gold rose 0.2% to $4,503.88 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Bernadette Toh.©2026 Bloomberg L.P.
