Key Points:
Mediators involved in the Middle East conflict reportedly believe the U.S. and Iran are nearing an agreement that would revive a previously failed memorandum of understanding.
According to The Times of Israel, cited by Fox News, negotiators from Pakistan, Egypt, and Qatar have been working to clarify how shipping through the Strait of Hormuz would operate under the proposed arrangement.
The report cites an Arab official and another source familiar with the discussions.
Sources also say the White House is expected to wait until after President Trump meets with Israeli Prime Minister Benjamin Netanyahu on Tuesday before making any decision on the proposal.
Market Impact:
A breakthrough would likely be viewed as positive for global markets, easing concerns over energy supply disruptions through the Strait of Hormuz. Such an outcome could weigh on crude oil prices while supporting risk assets if investors see the agreement as reducing the risk of a broader regional conflict.
US stocks have moved higher.NASDAQ index is now trading up 6.49 points or 0.04% at 24941, and is back above its 100 day moving average at 24755.38. The index was down -351.08 points at session lows.S&P index is up 27 points or 0.37% at 7440.Dow continues to outperform with a gain of 602 points or 1.15% at 52816. Crude oil for is trading down $3.16 at $79.40.
Yields are lower with the two-year down -5.8 basis points at 4.264%. The 10 year yield is down -4.69 basis points at 4.594%.
The Federal Reserve is meeting today and will announce its rate decision tomorrow. The odds of a hike are now back below the 30% level after trading close to 40% over the last week or so.
Despite the rebound there are still some AI related stocks which are down sharply on the day including SanDisk which is still down -13.42%.
SanDisk (SNDK): -$171.50 (-13.42%)
Coherent (COHR): -$32.09 (-11.83%)
Lumentum (LITE): -$72.20 (-10.14%)
Nebius Group (NBIS): -$15.79 (-8.40%)
Micron (MU): -$75.21 (-8.35%)
Lam Research (LRCX): -$23.81 (-8.17%)
Arm Holdings (ARM): -$19.63 (-7.37%)
Applied Materials (AMAT): -$36.47 (-7.06%)
Advanced Micro Devices (AMD): -$33.17 (-6.70%)
Astera Labs (ALAB): -$18.20 (-6.44%)
Credo Technology (CRDO): -$12.54 (-6.02%)
Marvell Technology (MRVL): -$10.92 (-5.77%)
KLA Corp. (KLAC): -$10.83 (-5.33%)
This article was written by Greg Michalowski at investinglive.com.