Stocks Near Records, Oil Falls on US-Iran Peace Hopes

Stocks Near Record Highs, Oil Falls as Markets Eye US-Iran Peace Progress

Wall Street stocks hovered near record highs on Wednesday while crude oil prices retreated as investors assessed potential progress in US-Iran peace negotiations. The possibility of reopening the Strait of Hormuz and easing energy price pressures buoyed market sentiment.

Markets Find Direction on Peace Hopes

Iran's state TV reported obtaining a draft framework for an initial understanding between Tehran and Washington to end the conflict, though the White House denied the claim. The Dow Jones rose 365 points, the S&P 500 was flat, and the Nasdaq fell due to a pullback in chip stocks. Treasury yields eased on hopes that the blockade could soon be lifted.

Oil Prices Drop, Gold Hits Two-Month Low

US crude fell 4.61% to $89.56 per barrel, and Brent crude dropped 4.06% to $95.54. Gold prices declined to a two-month low on rising rate hike bets. The dollar index was steady, while the yen weakened against the greenback.

Treasury Yields Fall, Fed Rate Hike Odds Rise

The yield on the 10-year Treasury note fell 2 basis points to 4.471%. According to CME's FedWatch tool, the probability of a December rate hike rose to 38.1%. Investors continue to monitor Middle East developments and Fed policy signals.