Wall Street Rebounds as U.S.-Iran Peace Deal Hopes Lift Markets and Ease Oil Prices

Wall Street closed higher on Thursday as investor sentiment improved following reports of a potential U.S.-Iran peace agreement brokered with Pakistan’s mediation. The news helped major stock indexes recover from earlier losses while also pushing oil prices and Treasury yields lower. The S&P 500 gained 0.2% to finish at 7,446.05, the Nasdaq Composite edged up 0.1% to 26,293.10, and the Dow Jones Industrial Average climbed 0.3%, reaching a fresh record high for the first time since February.

Reports from Iranian media suggested that Washington and Tehran had finalized a draft peace agreement that includes an immediate ceasefire, protection of shipping routes in the Gulf and Strait of Hormuz, and negotiations on unresolved issues within days. The announcement eased concerns over a prolonged Middle East conflict that had threatened global oil supplies and increased inflation fears.

Brent crude prices reversed earlier gains and slipped below $105 per barrel after the report. Treasury yields also retreated as investors reduced expectations for aggressive interest rate hikes linked to rising energy costs. Market focus remained on the Federal Reserve after recent meeting minutes indicated policymakers could raise rates further if inflation stays elevated.

Nvidia remained under pressure despite reporting stronger-than-expected quarterly earnings and revenue growth fueled by booming artificial intelligence demand. Investors questioned whether the AI chip giant can maintain its rapid expansion and justify its massive valuation. Shares closed nearly 2% lower after the earnings release.

Meanwhile, Walmart shares dropped more than 7% after the retailer warned that higher fuel costs could contribute to rising consumer prices later this year. Quantum computing stocks surged after reports that the Trump administration plans to invest billions into the sector, with IBM expected to receive significant funding.