Bonds & Stocks
Hopes for a deal to revive the Strait of Hormuz lifted stocks toward all-time highs, bonds rose and oil sank, with Wall Street’s enthusiasm also fueled by a batch of solid corporate earnings. The S&P 500 rose 0.6%. The yield on 10-year Treasuries declined four basis points to 4.63%.
Economy
Oil slid as optimism grew that the US and Iran are moving closer to a deal to reopen the vital Strait of Hormuz checkpoint. Brent dropped more than 4% below $80 a barrel, reversing earlier gains. US Treasury Secretary Scott Bessent said in an interview with CNBC that “there is a chance we may have a deal today or tomorrow to open the strait.”
World
Treasury Secretary Scott Bessent said that the weakness of the yen has contributed to Japan’s inflation problem and raised the risk of broader depreciation of Asian currencies as he reiterated US support for efforts to stabilize the situation.