US equity indices retreated on Thursday, as crude oil prices surged amid hopes for a potential ceasefire extension between the US and Iran.
At 10:06 a.m. ET, the Dow Jones Industrial Average fell 60.68 points, or 0.13%, to 48,403.04, the S&P 500 lost 5.45 points, or 0.08%, to 7,017.50 and the Nasdaq Composite lost 67.64 points, or 0.28%, to 23,948.38.
At the open, the Dow Jones Industrial Average rose 94.1 points, or 0.19%, to 48,557.82. The S&P 500 rose 14.8 points, or 0.21%, to 7,037.78, while the Nasdaq Composite rose 46.4 points, or 0.19%, to 24,062.454.
Indications of renewed diplomatic negotiations intended to conclude the conflict involving the US, Israel, and Iran have propelled stock benchmarks to record peaks, reflecting investor confidence in a rapid post-war economic recovery.
“Hope has given way to a bright, beaming light at the end of the peace tunnel,” said Stephen Innes at SPI Asset Management.
“The market is no longer asking whether there will be a deal. It is trading as if the deal is already signed, sealed, and quietly filed away,” added Innes.
Crude oil prices persisted at high levels as market participants evaluated the prospects of a comprehensive accord that might eventually reopen the Strait of Hormuz. This critical maritime corridor, which typically facilitates the transit of twenty percent of global oil and gas supplies, has remained restricted by Iranian naval forces since the onset of the US-Israeli military offensive.
Brent crude oil, the international standard, rose 1.4% to $96.24.
In the bond market, the yield on the 10-year Treasury fell to 4.26% from 4.29% late on Wednesday.
Key Stock Movers
Shares of Marsh & McLennan rose 2.2% and Prologis climbed 3.6% after both the firms reported stronger results than expected.
PepsiCo stock rose 2% after the company reported better results than expected.
Abbott shares fell 4.1% despite the firm reported slightly better results than estimated.
Stocks of Charles Schwab and Travelers fell 5% and 1.3%, respectively, after their results.
Voyager Technologies stock rose 3% after NASA signed an order for the company to conduct the seventh private astronaut mission to the International Space Station.
Bullion Market
Gold prices edged higher on Thursday on hopes for a peace deal between the US and Iran.
As of 9:00 a.m. ET (1300 GMT), spot gold rose 0.6% to $4,816.14 per ounce. US gold futures gained 0.3% to $4,838.10.
Among other metals, spot silver rose 0.3% to $79.27 per ounce. Platinum added 0.9% to $2,129.55 and palladium was up 0.3% at $1,578.06.