Bonds & Stocks
Stocks climbed around the world, joining gains in bonds as oil slumped after the US and Iran agreed to reopen the Strait of Hormuz, fueling hopes for an end to the conflict that has roiled markets. The S&P 500 rose 1.4%. The yield on 10-year Treasuries declined three basis points to 4.45%.
Economy
Just three weeks into the job, Federal Reserve Chairman Kevin Warsh is already facing an unusually high-stakes test. Inflation is roaring back at the fastest pace in three years. There’s growing dissent among the central bank’s policymakers. And investors have been dumping US Treasury bonds and piling into bets the Fed will need to start raising rates by December, defying President Trump’s call to lower them instead.
World
The US and Iran said they reached an interim peace agreement to reopen the Strait of Hormuz and move further toward ending a 15-week war that’s wrought chaos across the Middle East and reverberated through the global economy.