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(Bloomberg) — US stocks modestly extended all-time highs as traders waited to see whether America and Iran could finally get a peace deal across the line and restore oil flows through the Strait of Hormuz.
S&P 500 futures rose 0.1% as the index closed in on a ninth consecutive weekly advance. Brent crude fell 1.3% to below $93 a barrel, with the benchmark set for its biggest monthly drop since the onset of the pandemic. Treasuries held steady after days of gains while the dollar nudged higher.
The prospect of a peace deal in the Middle East after weeks of elusive progress is easing pressure on oil prices and raising conviction that markets’ worst inflation fears wouldn’t come to pass. That confidence comes against a backdrop of an unprecedented artificial intelligence-led rally that has seen US-listed chipmakers surge nearly 70% since the beginning of April.
“Brent below $90 by the end of next week seems at our reach,” wrote Florian Ielpo, head of macro at Lombard Odier Investment Managers. “It would create a rather supportive environment should it happen, clearly as oil prices have been the source of most macro fears this year.”
