US Stocks Rise, Oil Prices Decline Amid Reports of US-Iran Diplomatic Efforts

Market Rally Lifts Stocks and Bonds Amid Hopes for Iran Deal

A decline in oil prices on hopes for a deal to end the war in Iran lifted stocks and bonds, with traders awaiting Nvidia Corp.'s results for clues on whether a surge from 2026 lows has more room to run.

US crude fell below $100 on a report that President Donald Trump said Washington is in the "final stages" of talks with Tehran. The S&P 500 broke a three-day losing streak. With Nvidia's sales estimated to have grown at the fastest clip in more than a year, the shares led a rally in chipmakers. The advance in Treasuries sent long-term yields down from the highest since 2007.

The recent rout in longer-dated debt lifted yields to levels last seen during the global financial crisis on concerns that elevated energy costs will fuel inflation and trigger interest-rate hikes. However, a rebound in Treasuries on Wednesday sent yields down from the highest levels since 2007.

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For many on Wall Street, Nvidia's results will help set the tone for a stock market that's hovering near its all-time highs and facing renewed worries about the economic fallout of the war in Iran.

Nvidia rose 2% on Wednesday. It has declined the day after the last three earnings reports even though the company posted solid results. The options market is pricing in a 5.5% move in either direction in the wake of the upcoming report.

For Nvidia, the focus is typically not whether it beats expectations, but by how much, given it has topped both revenue and earnings estimates for 13 consecutive quarters.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Investors will also seek fresh guidance on the firm's longer-term sales forecast and its attempts to reenter the Chinese market for AI processors. Chief Executive Officer Jensen Huang recently said that he believes China will reopen "over time."

On the geopolitical front, the flow of oil through the Strait of Hormuz picked up over the past 24 hours, offering hope that a handful of government-level deals for transit might help to boost cargo shipments. Meantime, Iran warned it would retaliate beyond the Middle East if the US or Israel attacks it again, following renewed threats from President Donald Trump.

Some of the main moves in markets include:

In the currency market, the Bloomberg Dollar Spot Index fell 0.3%, while the euro rose 0.2% to $1.1632. The British pound rose 0.4% to $1.3455, and the Japanese yen rose 0.2% to 158.70 per dollar.

In the cryptocurrency market, Bitcoin rose 0.7% to $77,522.07, and Ether rose 0.9% to $2,136.69.

The yield on 10-year Treasuries declined nine basis points to 4.58%, while Germany's 10-year yield declined 10 basis points to 3.09%. Britain's 10-year yield declined 15 basis points to 4.98%.

In the commodities market, West Texas Intermediate crude fell 4.9% to $99.09 a barrel, while spot gold rose 1.2% to $4,536.16 an ounce.