This content was published on
June 18, 2026 - 15:55
4 minutes
(Bloomberg) — Wall Street staged a comeback that saw stocks climbing as oil fell after a peace deal between the US and Iran spurred optimism that a revival of the Strait of Hormuz will ease inflation risks.Following a back-to-back slide, the S&P 500 rose about 1%. Tech shares led gains, with Intel Corp. jumping as President Donald Trump said the chipmaker will work alongside Apple Inc. to design and produce semiconductors domestically. Treasuries bounced after a rout driven by worries the Federal Reserve would need to raise rates to curb price pressures. US oil slid to $74.Trump formally agreed on an interim peace accord with Iran, shifting focus to the planned reopening of the vital energy chokepoint and a complex 60-day negotiating period over Tehran’s nuclear program. While ships weren’t moving en masse through Hormuz as of Thursday morning, some appeared to sail through.An end to the tensions and the reopening of the Strait paves the way to restart millions of barrels of oil production shuttered by major exporters — an unprecedented disruption that initially propelled fuel prices to record levels. US gasoline prices dipped below $4 a gallon for the first time since March.If the US-Iran agreement holds, analysts say that could take substantial pressure off of energy costs and inflation.“The progress toward releasing oil supply from the Persian Gulf has supported equity prices,” said Ian Lyngen at BMO Capital Markets. “Lower energy costs have also eased forward inflationary concerns and led to meaningful declines in longer-dated Treasury yields.”Federal Reserve Chairman Kevin Warsh this week vowed to restore price stability following his first policy meeting since taking the helm of the central bank, after officials left rates unchanged and signaled growing support for hikes.Should lower energy costs continue to filter through to inflation data, policymakers may ultimately find sufficient justification to keep rates unchanged for an extended period rather than hiking, according to Fawad Razaqzada at Forex.com.“My view remains that inflation should moderate gradually over the coming months, and this might allow the Fed to maintain current policy settings rather than implement fresh tightening,” he said.Meantime, the Bank of England held interest rates at 3.75% as it said the recent fall in oil prices was “encouraging,” even while two of the nine policymakers voted for an immediate quarter-point hike over concerns of persistent inflation.Corporate Highlights:SpaceX fell for a second straight day as it wraps up its first week as a public company following a record initial public offering. Accenture Plc said it’s expecting to reel in less revenue in the coming months, as artificial intelligence upends the consulting services industry and clients paused business due to the conflict in the Middle East. Take-Two Interactive Software Inc. will open pre-orders for Grand Theft Auto VI on June 25, kicking off the launch of one of the most anticipated video games of all time. Kroger Co. sank after the grocery-store operator signaled that economic pressures on consumers and its investments to gain share could weigh on near-term performance. Pfizer Inc. Chief Financial Officer Dave Denton will step down from his role in August, the pharmaceutical company said, and the search for a replacement is underway. Some of the main moves in markets:StocksThe S&P 500 rose 0.9% as of 9:52 a.m. New York time The Nasdaq 100 rose 1.8% The Dow Jones Industrial Average rose 0.6% The Stoxx Europe 600 fell 0.6% The MSCI World Index rose 0.4% CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.2% to $1.1475 The British pound fell 0.4% to $1.3244 The Japanese yen fell 0.1% to 160.86 per dollar CryptocurrenciesBitcoin fell 0.6% to $64,001.57 Ether fell 0.5% to $1,737.66 BondsThe yield on 10-year Treasuries declined six basis points to 4.43% Germany’s 10-year yield was little changed at 2.92% Britain’s 10-year yield was little changed at 4.75% CommoditiesWest Texas Intermediate crude fell 3.9% to $73.79 a barrel Spot gold was little changed ©2026 Bloomberg L.P.
