This content was published on
June 18, 2026 - 09:30
5 minutes
(Bloomberg) — US stocks are staging a rebound after President Donald Trump signed a preliminary deal to end the war in the Middle East, sending Brent crude briefly to its lowest level since the onset of the conflict.S&P 500 futures climbed 0.9% while Nasdaq 100 contracts rallied 1.4%. The moves followed a decline of more than 1% in the US benchmark after Federal Reserve officials signaled they may have to raise interest rates this year to contain inflation.Brent fell 1.8% to slide toward $78 a barrel. Treasury yields eased as traders pared hawkish bets on US interest rates, even though an October hike remained fully priced in. The dollar gave back part of its biggest gain since April.Trump told reporters he signed the interim deal with Iran at the Palace of Versailles near Paris, where he had dinner with French President Emmanuel Macron. The memorandum of understanding is now in effect, a US official said. However, it was unclear if Iran had immediately begun taking steps to fully reopen the Strait of Hormuz.Markets have gone through three major tests — the debut of SpaceX, Kevin Warsh’s first meeting as Fed chair and a US-Iran peace deal — fairly unscathed, said Raphael Thuin, head of capital market strategies at Tikehau.“With the MOU now signed, there’s reason to believe that we may be close to or past peak inflation,” Thuin said. “The market will be able to concentrate on earnings again, like for Micron next week.”Optimism that the US-Iran deal may ease geopolitical tensions and reduce the risk of further disruptions to global energy supplies has provided another tailwind for global equities. The asset class has largely shrugged off the turmoil sparked by the war and continued to notch record highs on the back of relentless enthusiasm for artificial intelligence.Bond investors, however, face the prospect of lingering inflationary risks that may keep the higher-for-longer rates narrative intact. Even though oil prices have eased, pressure on inventories remains acute. Stockpiles at Cushing, the largest US commercial storage hub, have sunk to about 20 million barrels, a level traders consider an operational minimum.‘Getting Ready’The Fed decision marked the fourth consecutive meeting in which the central bank left rates unchanged. Officials described economic growth as “solid” and highlighted strong productivity gains and capital investment, while making clear that inflation has become a greater concern than labor-market weakness.Roughly half of Fed policymakers projected rate hikes this year. Warsh declined to offer guidance on the next policy move. He emphasized that inflation has remained above the Fed’s 2% target for several years and reiterated the central bank’s commitment to restoring price stability.“Half the committee is expecting rate hikes this year, which is a real shot across the bow at the market,” said Bob Michele, chief investment officer and global head of fixed income at JPMorgan Asset Management. “I think they’re getting ready for rate hikes.”Corporate Highlights:Credit Agricole SA is considering increasing its stake in Banco BPM SpA as it mulls how to respond to a wave of dealmaking in Italy’s banking sector, according to people familiar with the matter. Tesco Plc’s sales rose less than expected in the fiscal first quarter as the UK’s biggest supermarket grapples with weaker consumer sentiment. An Oaktree Capital Management private credit fund saw redemption requests drop by nearly half in the second quarter, making it the first major firm to stem a growing exodus from the $1.8 trillion industry. Microsoft Corp. has built a big business selling AI models to Chinese companies despite the growing rivalry between the US and China over artificial intelligence. Angry shareholders confronted Nidec Corp.’s board at the motor manufacturer’s annual meeting, following a tumultuous year marred by accounting scandals, manufacturing defects and the ouster of its charismatic founder. StocksThe Stoxx Europe 600 was little changed as of 8:27 a.m. London time S&P 500 futures rose 0.9% Nasdaq 100 futures rose 1.4% Futures on the Dow Jones Industrial Average rose 0.5% The MSCI Asia Pacific Index rose 0.5% The MSCI Emerging Markets Index rose 0.3% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1509 The Japanese yen was little changed at 160.62 per dollar The offshore yuan rose 0.2% to 6.7652 per dollar The British pound was little changed at $1.3296 CryptocurrenciesBitcoin fell 0.3% to $64,174.98 Ether fell 0.2% to $1,742.55 BondsThe yield on 10-year Treasuries declined five basis points to 4.44% Germany’s 10-year yield was little changed at 2.92% Britain’s 10-year yield was little changed at 4.76% CommoditiesBrent crude fell 1.7% to $78.19 a barrel Spot gold rose 1.2% to $4,306.23 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Julien Ponthus.©2026 Bloomberg L.P.
