Wall Street stocks turned mostly lower yesterday, while global equities dipped as optimism over peace talks faded and the US-Iran ceasefire expiration loomed.
Two of the three major US stock indexes slipped, while gold dropped and US crude advanced. The US military said it had seized a tanker linked to Iran in international waters in an apparent action to enforce a blockade as the clock ticked towards the ceasefire’s expiry.
Washington expressed confidence that peace talks with Iran would proceed in Pakistan. But Pakistan is awaiting a formal confirmation from Iran that it will send a delegation to Islamabad for a second round of peace talks.
“It’s become very clear that the Trump administration is looking for an off-ramp and will negotiate in a manner that they can claim a win,” said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. “US investors and global investors are holding their breath, but leaning to a positive outcome when it comes to Iran.”
Amazon said on Monday it will invest up to $25 billion in Anthropic, reviving the fervour over artificial intelligence-related stocks.
The Dow Jones Industrial Average fell 34.99 points, or 0.07pc, to 49,407.09, the S&P 500 lost 10.22 points, or 0.15pc, to 7,098.71 and the Nasdaq Composite rose 13.90 points, or 0.05pc, to 24,415.85.
European shares were lower amid restrained risk appetite ahead of the ceasefire deadline. MSCI’s gauge of stocks across the globe fell 1.61 points, or 0.15pc, to 1,070.38. The pan-European STOXX 600 index fell 0.77pc, while Europe’s broad FTSEurofirst 300 index fell 19.99 points, or 0.81pc. Emerging market stocks rose 14.66 points, or 0.92pc, to 1,615.04. MSCI’s broadest index of Asia-Pacific shares outside Japan closed higher by 1.04pc, to 826.86, while Japan’s Nikkei rose 524.28 points, or 0.89pc, to 59,349.17.
The US dollar edged higher on optimism over Iran war negotiations, and after retail sales data signalled economic strength. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.19pc to 98.26, with the euro down 0.25pc at $1.1757. Against the Japanese yen, the dollar strengthened 0.33pc to 159.31. The yield on benchmark US 10-year notes rose 4.2 basis points to 4.292pc, from 4.25pc late on Monday.
The 30-year bond yield rose 2.2 basis points to 4.903pc from 4.881pc late on Monday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 5.9 basis points to 3.775pc, from 3.716pc late on Monday.
Gold prices dropped as the dollar firmed, as investors looked to tentative US-Iran talks and Warsh’s Senate confirmation hearing. Spot gold fell 1.4pc to $4,752.02 an ounce.
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