US Stocks Gain Amid Ongoing US-Iran Ceasefire

Global Markets Bounce Back as US-Iran Ceasefire Appears to Hold

Relative calm has returned to global markets, with stocks rising and oil falling as signs that a US-Iran ceasefire is still in place reduced fears about a full-scale war that could hamper the economic outlook.

The bounce in equities drove the S&P 500 toward all-time highs as Washington played down the prospect of an active conflict with Tehran a day after an escalation of hostilities over the Strait of Hormuz. While crude prices remained elevated in the face of a blockade of the key energy chokepoint, Brent dropped to around $111. The developments came a day after the US and Iran exchanged fire in a flare-up of violence that also drew in the UAE, prompting calls for renewed strikes and casting doubt on the fate of a fragile ceasefire.

US Defense Secretary Pete Hegseth said the truce that began just under a month ago is still holding. Meantime, Iranian Foreign Minister Abbas Araghchi noted talks were "making progress," but the US and the United Arab Emirates "should be wary of being dragged back into quagmire."

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The rebound in global stocks from their Iran war lows has been so narrow that the market is primed for broader gains triggered by even slightly positive news, according to strategists at JPMorgan Chase & Co. Volatility is likely in the near term, but investors with a time horizon longer than the next days or weeks should keep using dips in equities to add exposure, the team led by Mislav Matejka said.

A rally in tech also buoyed the market. Apple Inc. has held exploratory discussions about using Intel Corp. and Samsung Electronics Co. to produce the main processors for its devices in the US. Meta Platforms Inc. is working on a financing package for a data center in El Paso, Texas, that could total roughly $13 billion. Alphabet Inc. is selling its biggest-ever euro-denominated bond.

Later Tuesday, Advanced Micro Devices Inc. is due to report results. The chipmaker is coming off its best month in the stock market since the dot-com era, and investors will get a chance to see whether its shares have gotten ahead of fundamentals.

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Traders also parsed economic data. US job openings were little changed in March while hiring rebounded as the labor market showed continued signs of stabilization. Separate figures showed a pickup in new-home sales. The service economy expanded at a more moderate pace in April and input prices remained sharply higher.