U.S.-Iran Tensions Ease as Dow Hits Record Close and Quantum Computing Stocks Surge

U.S. equity indices rebounded from intraday lows to close slightly higher as easing concerns over U.S.-Iran tensions and a pullback in oil prices lifted sentiment, with the Dow Jones Industrial Average hitting a record closing high.

“The Supreme Court dealt a major blow Thursday to four major cruise lines accused of profiting from Cuban property seized during Fidel Castro’s communist revolution, reviving lawsuits that could cost the companies hundreds of millions of dollars”

Fox Business

In the same session, the yield on the 10-year U.S. Treasury note declined by 3 basis points to 4.56%, while U.S. WTI crude oil briefly fell to $95.76 per barrel and Brent crude declined over 2.7%.

Fox Business

The Asian market wrap said traders watched negotiations closely as oil and equities swung on reports that Iran’s Supreme Leader ordered near-weapons-grade uranium must remain within Iran, with Tehran rejecting relinquishing its enriched uranium stockpile and oil prices spiking as much as 4%.

It also quoted Glenmede’s Jason Pride saying, “In the near term, market direction will be dictated by rumors or concrete agreements related to Iran,” as the front-month WTI contract closed nearly flat and the Mag 7 lagged while the quantum computing sector surged.

Despite reporting results after the market close that were widely viewed as strong, NVIDIA shares continued a pattern of post-earnings underperformance, with the stock down 1.8% in the Asian wrap and down -0.60% in the TradingView market snapshot.

The Asian wrap said Peter Callahan of Goldman Sachs noted NVIDIA—valued at over $5.4 trillion—is too large for any single day’s earnings data to meaningfully move its stock price, a trend observed over the past six to seven quarters.

TradingView

Walmart shares plunged 7.3% in the Asian wrap after CFO John David Rainey said, “Consumers are feeling pressure from high gasoline prices,” and the company warned that if the high-cost environment persists, retail price inflation is expected to rise further in the second quarter and the second half of the year.

TradingView’s snapshot instead framed the day as stocks falling on doubts over a US-Iran peace deal, with the S&P 500 Index down -0.44% and the 10-year T-note yield up +4 bp to 4.61% as crude prices jumped more than +3% on the uranium directive report.

Outside markets, the Fox Business report said the U.S. Supreme Court dealt a major blow Thursday to four cruise lines accused of profiting from Cuban property seized during Fidel Castro’s communist revolution, reviving lawsuits that could cost the companies hundreds of millions of dollars.

“All three major indices rebounded from intraday lows to close slightly higher, with small-cap stocks outperforming large caps”

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The ruling was an 8-1 decision siding with Havana Docks Corporation, and Fox Business quoted Justice Clarence Thomas writing that the cruise companies “used confiscated property to which Havana Docks owns the claim.”

Fox Business said the decision revives more than $440 million in judgments against Carnival, Norwegian Cruise Line, Royal Caribbean and MSC Cruises for using the Havana port during the Obama-era thaw, and it described the case as heading back to lower courts where the cruise lines are expected to continue fighting the claims.

In parallel, TradingView tied market risk to the Strait of Hormuz reopening, saying crude prices jumped more than +3% after Reuters reported Iran’s Supreme Leader said enriched uranium must stay in Iran, and it noted the markets were awaiting Iran’s official response to the latest U.S. proposals.