U.S. stock market hits four records: investors await U.S.-Iran agreement

U.S. stock indices reached new historical peaks at the end of trading on Ma. 28. They finished the previous day at record levels, so they needed only a small impulse to renew their highs.

According to Axios, the memorandum of understanding, which the parties may sign, will provide for "unlimited" navigation through the strategically important Strait of Hormuz. Iran will have to remove all mines from the strait within 30 days.

- The broad market index S&P 500 rose by almost 0.6% at the end of trading on Ma. 28 and reached an all-time high of 7,563.7 points.

- The blue-chip index Dow Jones Industrial Average added a symbolic 0.05% on Thursday, but also reached a new record of 50,669.77 points.

- The Nasdaq Composite Technology Sector Index jumped 0.9%, ending trading at a peak of 26,917.47 points. The index's cumulative gain for April and May is now 24.4%, the strongest two-month climb since Ma 2009, according to Dow Jones Market Data cited by MarketWatch.

- The Russell 2000 index of small and mid-capitalization companies rose 0.7% to 2,940.24 points. This is also a record.

- The yield on 30-year U.S. government bonds fell below 5% for the first time since Ma. 12. Investors' concerns about inflation fueled by high oil prices caused bond yields to jump to multi-year highs, MarketWatch recalls.

- Brent crude futures lost 0.6% and traded below $94 per barrel. North American WTI rose by 0.1%.

The United States and Iran have agreed on a memorandum of understanding to extend the ceasefire and begin negotiations on Iran's nuclear program, three unnamed officials told Axios. According to the draft memorandum, shipping through the Strait of Hormuz is to become "unrestricted": no duties or harassment of vessels. Iran would also have to remove all mines from the strait within 30 days. The U.S. naval blockade will be lifted gradually as traffic through the Strait is restored.

The document also includes Iran's commitment not to pursue nuclear weapons. Within 60 days, the parties intend to discuss the fate of Iran's highly enriched uranium and the parameters for further enrichment. The U.S., in turn, is ready to discuss easing sanctions and unblocking frozen Iranian assets, a U.S. official told Axios.

The signing of the memorandum could be the biggest diplomatic breakthrough since the beginning of the war, the newspaper said. The main terms of the deal were agreed by Ma 26, but both sides needed approval from the top leadership. Iran later said it was ready to sign the document, while Trump asked for a few days to think about it, Axios writes.

Axios' information was later confirmed by Bloomberg and MarketWatch sources. Asked about the readiness of the agreement, U.S. Treasury Secretary Scott Bessent limited himself to saying that "the teams continue to exchange proposals." He also stressed that Trump's "red lines" - opening the Strait of Hormuz, Iran handing over highly enriched uranium and ending its nuclear program - remain binding conditions for a deal.

"The market reaction [to news of the pending deal] has been positive but not overly strong," Bloomberg quoted Miller Tabak + Co. chief market strategist Matt Maley as saying. Matt Maley. According to him, investors were expecting news of the peace agreement and "have been putting that outcome into prices for a long time."

"Consumer stocks are the first to react sharply to such news, and that could push the market higher," said David Wagner, head of equities at Aptus Capital Advisors, as quoted by CNBC.

At the same time, some analysts caution against hasty optimism. "Stocks are priced right now as if everything is perfect, even though the world is far from perfect," Emily Roland, co-chief investment strategist at Manulife John Hancock Investments, said on Bloomberg TV.

This article was AI-translated and verified by a human editor