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Investors focus on US-Iran discussions as stocks rise and yields fall
Investors weighed the likelihood of a short-term agreement to end the U.S./Israeli war against Iran as they viewed the major stock indexes. As uncertainty about the Iran talks continued, oil prices rose. U.S. Secretary?Marco Rubio stated that although the United States have made some?progress? towards a deal with Iran, more work needs to be done. Diplomatic efforts have intensified in an effort to put an end to the conflict that started late February. Iranian media reported that Iran's Foreign Minister met Pakistan's Interior Minister on Friday to discuss ideas to end the U.S. - Israel war. Wall Street saw the Dow reach a new record high, for the first since the Iran War began. The S&P 500 also was on course for its eighth consecutive weekly gain. The demand for AI stocks has pushed the stock market higher, despite concerns over economic fallout. The European share market finished the week at its highest level since more than a fortnight and posted their largest weekly gain in seven weeks. Although the gap between Iran and the United States has narrowed, there are still some sticking points regarding Iran's enriched Uranium and the Strait of Hormuz. Investors worry that energy disruptions could lead to higher consumer prices and a tighter response from the monetary policy. Geopolitical issues are causing a lot to be waited on. Some people are waiting, but the market believes that it will all be resolved at some point, said Tim Ghriskey senior portfolio strategist of Ingalls & Snyder, New York. He said that "you might see some pressure to sell" towards the end of?the day, ahead of the long U.S. holiday weekend. The U.S. bond and stock markets will be closed on Monday to observe Memorial Day. The Dow Jones Industrial Average increased 365.00 points or 0.73% to 50,653.60. The S&P 500 gained 35.06 points or 0.47% to 7,480.98. And the Nasdaq Composite advanced 76.05 or 0.29 to 26,369.15. The MSCI index of global stocks rose by 6.60 points or 0.60% to 1,113.49. Technology stocks helped the pan-European STOXX 600 Index rise 0.73%. The yield on the benchmark U.S. 10 year notes dropped 2.6 basis points from 4.584% to 4.558% late Thursday. Early in the week, a sell-off led to yields reaching months-or-years-long highs. The 10-year yield reached its highest level on Tuesday since January 2025. Turkey's financial market rebounded following a week of political turmoil against the main opposition party. The BIST 100 index, the benchmark in Istanbul, rose by 4.5% after a 6% drop on Thursday. This had led to a suspension of trades?after an order from a high court was made?to remove main opposition leader Ozgur Ozel. Oil prices are up, but US consumer sentiment is down. Investors have also taken into account a survey that showed U.S. consumers' attitudes plunged to an all-time low in May due to the escalating gasoline price. This has fueled fears about affordability. Oil prices finished higher. U.S. crude oil rose 25 cents, settling at $96.50 per barrel. Brent gained 96cents to settle at $103.54. As traders watched the talks about the war, they also assessed if the Federal Reserve would increase interest rates in the event of an acceleration in inflation. Kevin Warsh, the new Fed chairman was sworn-in on Friday. The dollar index measures the greenback in relation to a basket of currencies including the yen, the euro and others. The euro fell 0.09% to $1.1608, while the dollar rose 0.07%. The dollar gained 0.11% against the Japanese yen to reach 159.13. Data released on Friday revealed that Japan's core rate of inflation fell to its lowest level in four years in April. This complicates the outlook for Bank of Japan policies. Spot gold dropped 0.73%, to $4,508.00 an ounce.
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Investors focus on US-Iran negotiations as stocks climb and yields fall
Investors weighed the chances of a short-term agreement to end the U.S./Israeli war against Iran. As uncertainty remained surrounding the Iran talks, oil prices rose. U.S. Secretary Marco?Rubio stated that although the United States have made some progress towards a deal with Iran, more work needs to be done. Diplomatic efforts were intensified in order to put an end to the conflict that started late February. Iranian media reported that Iran's Foreign Minister met Pakistan's Interior Minister on Friday to discuss plans to end the U.S. - Israel war. Wall Street saw the Dow reach a new record high, for the first since the Iran War began. The S&P 500 also was on course for its eighth consecutive weekly gain. The booming demand for AI-related stock has pushed stocks higher, despite concerns over the economic impact of the war. There are still some'sticking points' between Iran and the United States over Iran’s enriched Uranium and its control of the Strait of Hormuz. Investors worry that energy disruptions could lead to higher consumer prices and force a tighter response from monetary policy. Geopolitical issues are a big wait. This is keeping many people away, but the market overall believes that it will all be resolved at some point," said Tim Ghriskey. He said that "by the end of today, you may see some pressure on sales" in anticipation of the long weekend ahead. He said. The U.S. bond and stock markets will be closed on Monday to observe Memorial Day. The Dow Jones Industrial Average rose by 369.12 or 0.73% to 50,654.78, while the S&P 500 gained 43.59 or 0.58% to 7,489.09, and the Nasdaq Composite increased by 164.55 or 0.63% to 26,457.65. The MSCI index of global stocks rose by 7.21 points (0.65%) to 1,114.10. The pan-European STOXX 600 Index rose 0.8%. The yield of the benchmark 10-year Treasury bill was down 3.4 basis point (bps) to 4.552%. The 10-year Treasury yield reached its highest level on Tuesday since January 2025, after a sell-off in the early part of the week. Turkey's financial market rebounded following a week of political turmoil against the main opposition party. The BIST 100 index, the benchmark in Istanbul, rose by 4.5% after it fell 6% on Thursday. This had led to a suspension of trades following a decision by a high court to remove main opposition leader Ozgur Ozel. US CONSUMER SENTIMENT DOWN, OIL UP Investors digested also a survey that showed U.S. Consumer Sentiment plunged to record lows in May, as rising gasoline prices fuelled anxieties about affordability. The oil price was higher but still on track to lose money for the week. U.S. crude oil rose by 1.34%, to $97.64 per barrel. Brent was up to $104.08 a barrel. As traders watched the talks about the war, they also assessed whether or not the Federal Reserve will raise interest rates in the event that inflation continues to increase. The dollar index, which measures greenbacks against a basket?currencies including the yen, the euro and others, increased by 0.12%, reaching 99.32. At $1.16, the euro fell by 0.15%. The dollar gained 0.1% against the Japanese yen to reach 159.12. The Bank of Japan is likely to be more cautious in its policy decisions after Friday's data showed that Japan's core rate of inflation fell to a record low of four years. Spot gold dropped 0.6% to $4,414.00 an ounce.
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Fear of rising costs of living drives US consumer sentiment down to record low
U.S. consumer confidence fell to a new record low in may as rising gasoline prices tied to the "Iran War" intensified affordability worries, underscoring broader dissatisfaction over President Donald Trump's economic management. University of Michigan Surveys of Consumers, conducted on Friday, showed that?sentiment between Republicans and Independents had dropped to its lowest level since Trump's second tenure. Trump's promise to lower inflation was a major reason he won reelection in 2024. However, Americans are now paying more for his tariffs as well as the U.S. and Israeli war against Iran. The conflict, which has lasted for almost three months, has caused disruptions in shipping along the Strait of Hormuz. It also increased energy prices and strained global supply chains, leading to shortages of many goods including consumer products, fertilizers and aluminum. AAA data shows that the national average retail price of gasoline has increased by more than 50% in just three months, to $4.552 per gallon. Heather Long, Chief economist at Navy Federal Credit Union, said that "American consumers are angry over the economy." "They dislike high prices for basic necessities." Surveys of Consumers at the University of Michigan reported that its Consumer Sentiment Index fell to 44.8 in the final reading, a new low. It was 48.2 this time last month. In April, the index stood at 49.8. The economists polled had predicted the index to remain unchanged at 48.2. The Republican mood has deteriorated to its lowest level since November 20,24. This is a trend that was mirrored by other independent surveys. A recent /Ipsos poll showed that Trump's approval rating as president fell to its lowest level since his return to the White House. This was due to a decline in Republican support. Growing discontent among Republicans is a warning for Trump and the Republican Party, as they try to maintain their majority in November's midterm elections. University of Michigan Surveys of Consumers revealed that Democrats' moods remained unchanged. The mood of lower-income consumers and those with no college degree has declined markedly. These groups are the ones who are most affected by rising gasoline prices and other essentials. The cost of living is still a major concern for consumers. 57% of them spontaneously mention that high prices are affecting their finances. This is up from 50% the previous month, according to Joanne Hsu. Investors shrugged the slump in sentiment. The Dow Jones Industrial Average, the blue-chip stock on Wall Street, reached a new record high. The dollar was stable against a basket currency. Treasury yields in the United States increased. NO CHEER FROM STOCK MARKET RALLY The stock market's rising share prices haven't been a source of joy for consumers. Economists note that the majority of wealth is in retirement accounts. Concerns are raised that inflation is outpacing wage increases and could reduce spending. The consumer spending has remained resilient, thanks in part to tax refunds that are hefty and the fact that households have been able to draw down their savings. The tax filing season has ended and economists don't believe consumers will continue to use their savings as the economic climate becomes more uncertain. "Consumers 'are still spending but the cost -of-living crisis means that they are using every dollar of their wallets to pay for the necessities of life, leaving no money for holidays or entertainment," said Christopher Rupkey. "The money that was spent on higher prices in the economy or the income tax refunds, must have already been gone." In April, consumer inflation reached its highest level in three years. Consumers were worried about inflation spreading to other goods and service as the Middle East conflict continued to rage. Consumer expectations of inflation in the coming year increased to 4.8% from 4.7% last month. Consumers' expectations of inflation in the next five years jumped to 3.9%, up from 3.5% last week. This is due to "significant jumps among independents and Republicans." The increase in inflation expectations strengthened the financial market's view that the Federal Reserve will keep its benchmark overnight rate at 3.50% to 3.75% until next year. John Ryding is the chief economist at Brean Capital. He said that the Fed could only ignore the rise in inflation during the oil shock if inflation expectations remained anchored. "Fed officials claim that this is true, but this report tests this claim." Reporting by Lucia Mutikani, Editing by Chizu nomiyama and William Maclean
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Holiday schedules for US economic and other data
The Memorial Day federal holidays on May 25 and May 24 will impact the release schedule for some major economic, energy, and commodities reports in Washington. The schedule is below. Time in EDT/GMT. Certain Treasury announcements may be subject to change. Monday, May 25, Memorial Day. Federal government offices, Federal Reserve and International Monetary Fund closed. Tuesday, May 26, Federal Reserve Bank of Chicago releases National Activity Index for the month of April, 830/1230 S&P Cotality Issues 20 Metro Area U.S. National Home Price Index for March, 09:00/1300 Federal Housing Finance Agency releases U.S. House Price Index, March 2009, 9am/1300 Conference Board releases U.S. Consumer Confidence Index, May 1000/1400 Federal Reserve Bank of Dallas releases Manufacturing Outlook Survey for May, 1030/1430 Treasury Dept. Treasury Dept. The U.S. Department of Agriculture releases weekly U.S. Export?Inspections for oilseeds and grains at 1100/1500. NOTE: This week's inspection is delayed due to the holiday. Treasury Dept. Treasury Dept. NOTE: Monday's sale has been delayed due to the holiday Treasury Dept. Treasury Dept. USDA releases weekly Crop Progress 1600/2000. Please note that this week's Crop Progress report is delayed due to the holiday. Wednesday, May 27 Mortgage Bankers Association releases weekly Mortgage Application Survey, 7:00-11:00 ADP releases weekly NER (National 'Employment?Report) Pulse at 0815/1215. Note: this report is delayed from Tuesday due to the holiday. Redbook releases weekly retail sales index 0855/1255. Note: Tuesday's publication has been delayed due to the holiday. Federal Reserve Bank of Richmond releases May Survey of Manufacturing Activity and May Survey of Service Sector Activity. Federal Reserve Bank of Dallas releases Service Sector Outlook Survey, May 1030/1430 Treasury Dept. Treasury Dept. Treasury Dept. Treasury Dept. American Petroleum Institute issues a weekly national petroleum report 1630/2030. NOTE: this report is delayed from Tuesday because of the holiday. Thursday, May 28, Commerce Department issues Building Permit Revisions for April, no set time. No time limit for the Building Permit revisions issued by Commerce Dept. Weekly Jobless Claims Reports by the Labor Dept. Labor Dept. Commerce Department Commerce Department releases preliminary (second estimate), U.S. Q1 gross domestic product and first estimate of Q1 corporate profits; personal?Incomes for April; durable goods for April. 0830/1230 Commerce Dept. Commerce Dept. releases Single-Family Homes Sales for April 1000/1400 Energy Information Administration (EIA), Weekly U.S. Underground Natural Gas Stocks, 1030/1430 Treasury Dept. Treasury Dept. Treasury Dept. Treasury Dept. EIA releases weekly petroleum stock and output data at 1200/1600. Note: time change on Wednesday. Freddie Mac issues ?weekly U.S. mortgage rates, 1200/1600 Federal Reserve - Bank of Dallas releases Trimmed Mean PCE Price Index for April, no fixed time Treasury Dept. Treasury Dept. Federal Reserve Weekly Balance Sheet, 1630/2030 Friday, May 29, USDA releases weekly export sales, 0830/1230. Due to the holiday, this week's export sales are delayed. Commerce Dept. Commerce Dept. The Institute for Supply Management releases the Chicago PMI for May 0945/1345
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Six Lebanese doctors killed by Israeli attacks in 24 hours: Health Ministry
Lebanon's Health Ministry announced on Friday that six Lebanese Paramedics had been killed in two Israeli airstrikes on southern Lebanon over a 24-hour period. The ministry condemned the attacks, calling them violations of international law. The health ministry of Lebanon reports that an Israeli strike in southern Lebanon, overnight on Thursday and Friday, killed four paramedics with the Islamic Health Association. The ministry reported that two medics of the Al-Rissala Scouts Association?in Deir Quanoun En-Nahr were killed by an Israeli strike on Friday morning. The Israeli military did not immediately respond to questions about the strikes. The ministry released a video, which it claimed was shot in Deir Qanoun En-Nahr. It showed two men wearing yellow vests?on the roadside tending to someone. A flash and loud boom are heard when an ambulance approaches these two men. These same men then lie on the ground. The buildings, trees and road map matched the archive images of the area. According to the health ministry, there were six deaths in Deir Quanoun En Nahr. This included two medics, a child from Syria, and other people. Airstrikes on the town earlier this week killed 14 people. This was the deadliest strike since last month's tenuous ceasefire. Since March 2, when the Lebanese group Hezbollah opened fire on Israel, more than 3,100 people in Lebanon have died. According to the statistics released by the Health Ministry on Friday, 123?medics and more than 210 women were among those killed. The international humanitarian law protects frontline responders and healthcare workers, as well as civil infrastructure such as healthcare centres. According to the World Health Organization, Israeli airstrikes have damaged or completely shut down several hospitals in southern Lebanon. According to the Health Ministry, on Thursday, an Israeli strike near the Tebnine Hospital, in southern Lebanon, damaged all three levels of the building, including the emergency room and intensive care unit. The hospital also suffered damage to its surgical ward, ambulances, and the outside parking lot. Reporting by Maya Gebeily, Catherine Cartier and Tansy Liu in Beirut; Eleanor Whalley and Rami Ayyub from Jerusalem; Editing by Chiara Rodriquez
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France prepares UN resolution on Hormuz after vote on US text is delayed
France has written a U.N. Security Council Resolution on setting up a international mission to restore?movement?in Strait of Hormuz?and You could submit it, if The conditions are "right",?the Foreign Ministry said on Friday as Washington struggled to put to a vote an anti-Tehran text that Russia and China might claim is biased. The control of the narrow waterway is a major obstacle to ending the U.S.-Iran conflict, which has lasted for three months. It's a vital artery in the global energy trade, and its virtual closure caused oil prices to skyrocket. The U.S. and Bahraini resolutions on the strait have been discussed for over two weeks. Voting has been repeatedly delayed because China and Russia'signaled they could veto' it. The U.S. and Bahraini draft resolution requires Iran to cease attacks and mining within the strait. China and Russia both vetoed an April text backed by the U.S., saying it was biased towards Tehran. Two European diplomats claim that Washington has secured the co-sponsorship of almost 140 countries in order to avoid a veto. France, a veto-wielding country, has refused to support the U.S. draft. There is currently a draft of a resolution being discussed between the U.S.A. and Bahrain. The current discussions are based on this document. Pascal Confavreux, a spokesman for France's Foreign Ministry, said that the date of the vote "has not been announced yet". France's President Emmanuel Macron said that Paris would push an initiative to the UN in order to consolidate Franco-British attempts to put together a?international team to reestablish freedom of navigation once the situation allows and after consulting with Washington and Tehran. "We're working on an international mission to restore the freedom of navigation." As a permanent member of the UN, we have prepared a draft that can be discussed when conditions are favorable," said Confavreux. The?U.S. The?U.S. John Irish is reporting.
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Rubio mentions progress in Iran talks, but "we are not there yet".
Marco Rubio, the Secretary of State, said that although there has been some progress in talks with Iran, and the United States is constantly communicating?with pakistani'mediators', there is still a lot more work to be done. There has been progress. I would not exaggerate. "I wouldn't minimize it," Rubio said to reporters following a NATO Ministers Meeting in Sweden. He added, "There is still more work to do." "We are not yet there." "I hope we get there." Rubio stated that President Donald Trump prefers to make a "good deal". He said that the core concern is that Iran cannot possess a nuclear weapon. Rubio stated, "We are dealing with a group of very difficult people. If it does not change, the president has made it clear that he will have other options." "He has said that he prefers to negotiate and get a good deal. However, he is concerned that this may not be possible. But we'll keep trying." Rubio stated that the United States was "in constant communication" with Pakistanis, who facilitate the talks with Iran. Rubio stated that the U.S. did not ask for NATO's help on Friday in the Strait of Hormuz, but a plan B is needed if Iran refuses to open the supply route. Reporting by Michael Martina, Doina Chiacu and CaitlinWebber; editing by Chizu Nomiyama & CaitlinWebber
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Russia reports four deaths and 35 injuries in the Ukraine attack on a Luhansk dorm for students
Russian officials confirmed that at least 4?people were killed and 35 children injured in an overnight Ukrainian drone attack on a'student dormitory' in the Russian controlled Luhansk region?in eastern Ukraine. The Ukrainian government, which is trying to recapture Luhansk - one of the four eastern regions Moscow unilaterally claimed in 2022 - in what Kyiv called an illegal land grab, was unable to independently verify what had happened. Both sides deny deliberately targeting civilians. Yana Lantratova is the Russian human rights commissioner. She said that 86 teenagers - aged 14-18 - were asleep in the hostel of the Starobilsk College at Luhansk Pedagogical University when 'Ukrainian drones' attacked the hostel during the night. Maria Lvova Belova, presidential commission for children's right, and Leonid Pasechnik the top Russian official in Luhansk said that two people were?pulled out of the rubble. Several?children's conditions in hospitals were described as serious. KREMLIN CALLS ATTACK MONSTROUS Dmitry Peskov, the Kremlin's spokesperson, called for punishment of those who are responsible. "This is an abominable crime. "This is an attack on a school where there are children and youth present," he said to reporters. Moscow announced that the U.N. Security Council will hold an emergency session later Friday in New York to discuss the incident. The Russian Foreign Ministry stated that the Ukrainian strike had destroyed the top three floors of the hostel. The Russian Foreign Ministry said that there were no nearby military installations and that Ukraine must have known what they were attacking. "We call on the international organizations, national governments and global community to give a?honest evaluation... and strongly condemn the bloody terrorist attacks." The Russian authorities released photos and videos showing rescue workers dragging a man from the rubble. They also showed severely damaged buildings, including one that appeared to be partially collapsed. Volodymyr Zelenskiy, the president of Ukraine, promised revenge after laying red flowers on the rubble from a Kyiv apartment block where a Russian missile attack had killed 24 people including three children. Reporting by Andrew Osborn, Writing by Kevin Liffey
Gold is a positive, as oil prices drop and hopes for Iran talks fade
On Friday, gold rose, reversing losses of over 1%. This was on the back of hopes that a breakthrough would be made in the Iran war after Tehran presented a new negotiation proposal, which eased inflation concerns.
At 1:50 pm, spot gold rose 0.1% to $4 627.63 an ounce. ET (1750 GMT), after having fallen as low as $4,59.48 in earlier sessions. The stock was still on course for a loss of 1.7% per week.
U.S. Gold Futures for June Delivery rose 0.4% to $4649.60.
Chris Gaffney is the president of EverBank's world markets. He said that positive news about negotiations to end war with Iran helped gold recover from its early morning losses.
He added that a halt to the Iran War could prompt the FOMC again to cut interest rates, which would lower the value of the U.S. Dollar and boost gold prices.
Dollar fell against other currencies, making greenback bullion more affordable for buyers with other currencies.
Iran's state-run media and a Pakistani government official have reported that Iran has presented its latest proposal to negotiate with the United States.
The news caused oil prices to drop, but they were still on track to make weekly gains. This is continuing fueling concerns about an economic slowdown in the world and a surge in inflation due to the rise of fuel prices.
Investors may turn to alternatives such as Treasury yields as a result of rising costs. This could put pressure on gold and other non-yielding investments.
The U.S. Federal Reserve left interest rates unchanged this week, striking a hawkish note that led markets to abandon their expectations of a rate reduction in 2018.
The price of gold has fallen significantly since the beginning?of the Iran Conflict in late February. This is despite its traditional role as a hedge to geopolitical uncertainties.
Silver prices have risen 3%, to $75.91 an ounce.
Ole Hansen is the head of commodity strategy for Saxo Bank. He wrote: "Long-term Outlook (for Silver)?remains backed by a sixth consecutive annual market deficit.
Palladium rose 0.6%, to $1,532.79. Platinum increased 0.3%, at $1,992.05. (Reporting by Anjana Anil in Bengaluru. (Editing by Nia William and Mark Potter.
(source: Reuters)