S&P 500 Nears Fresh Record on Iran Peace Push

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Stocks continued their climb, with the S&P 500 Index within sight of a fresh record, as optimism on the possibility of further peace talks between the US and Iran pushed down oil prices. The benchmark index was higher, extending a rebound that has brought it to the brink of its late-January peak, and the tech-heavy Nasdaq 100 rose, on pace for a streak of gains. Iran is considering a short-term pause to shipments through the Strait of Hormuz to avoid testing a US blockade and scuppering a fresh round of peace talks, according to a person familiar with Tehran’s deliberations. Alli McCartney, Alignment Partners at UBS Managing Director of Wealth Management joins to discuss the ongoing market reaction to possible peace talks. Stocks closed at session highs and were back in the green for 2026 after President Donald Trump said Iran still wanted to make a deal following a deadlock in peace talks and a US blockade of the Strait of Hormuz. Meanwhile, Goldman Sachs Group Inc. shares dropped in an underwhelming start to the earnings season. The S&P 500 rose 1% to its highest level since late February. Brent crude was up 3% at around $98 a barrel, paring earlier gains. Goldman retreated 1.9% as a revenue miss in fixed-income, currency and commodities outweighed a record haul from equities.  Equities extended their rally after Trump said Iran reached out to his administration over peace negotiations even as the US began a naval blockade of the Strait of Hormuz in the war’s seventh week. Read more: Trump Says Iran Reached Out on Deal as US Blocks Hormuz “The oil retracement, in combination with bearish positioning, has fueled the equity rebound,” said JonesTrading Chief Market Strategist Michael O’Rourke. “Overall, investors doubt the veracity of headlines, but they don’t want to be caught on the wrong side of them either.” Read more: Trump Vows to Hit Iran’s Ships as Hormuz Blockade Takes Hold  Even as Trump sought to jawbone negotiations back on track, there were few signs that was taking place after weekend talks failed in Islamabad. Iran blamed the deadlock on the US and Tehran has not confirmed further discussions on Monday. “Given the economic costs of higher oil prices and with the immediate turn of events highly uncertain, we think investors should avoid attempts to “trade” geopolitics,” wrote Ulrike Hoffmann-Burchardi, CIO Americas and global head of equities at UBS Global Wealth Management. At the same time, investors are eager to hear from executives about risks stemming from the war, the disruptive impact of artificial intelligence and worries over private credit as earnings season begins. Analysts project S&P 500 earnings will show roughly 12% annual growth for the first quarter.  Read more: Earnings Season Kicks Off With War, AI Threat Among Key Worries The question is whether “this upcoming earnings season can be enough of a catalyst to dismantle the close link between stocks and oil, as corporate earnings are what traditionally drive stock prices,” wrote Clark Bellin, president and chief investment officer at Bellwether Wealth. For Morgan Stanley strategist Mike Wilson, a strong earnings backdrop is protecting the S&P 500 from deeper losses, and he recommends that investors stand ready to add risk even if the Iran conflict continues. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X: https://twitter.com/BloombergRadio Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts: https://www.youtube.com/bloombergpodcasts Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake