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US Equity Indexes Rise This Week as Iran Heading for Peace Talks Lowers Geopolitical Risk

-- US equity indexes rose this week as Iran peace talks remained on schedule following Israeli attacks on Lebanon and a restricted Strait of Hormuz, and red-hot March inflation report came in line with expectations.

* The S&P 500 closed at 6,816.89 on Friday versus 6,582.69 a week ago. The Nasdaq Composite stood at about 22,902.89, compared with 21,829.18 a week earlier. The Dow Jones Industrial Average ended at 47,916.57, versus 46,504.67 at the end of last week.

* Industrials, communication services, and consumer cyclicals topped sector charts this week, while energy was the sole decliner. Geopolitical risk came off the boil as the US-Iran ceasefire pact included a reopening of Hormuz, a chokepoint to about a fifth of global crude oil flows.

* President Donald Trump asked Israel's Prime Minister Benjamin Netanyahu to scale back attacks on Lebanon after Wednesday's strikes killed more than 250 people and injured hundreds, threatening the ceasefire, according to the Wall Street Journal.

* Peace talks are scheduled for Saturday in Islamabad amid threats and preconditions set by the US, Israel, and Iran on the eve, including improved flow of maritime traffic from Hormuz. Vice President JD Vance will lead a team of US negotiators, including Trump's special envoy Steve Witkoff and son-in-law Jared Kushner, to the talks.

* Vance, before setting off for the high-stakes talks, said Washington is "willing to extend the open hand" in this weekend's negotiations but warned Tehran not to "try to play us," The Wall Street Journal reported.

* On the economic data front, investors were focused mainly on the inflation data. The personal consumption expenditures price index for February was mostly in line, but did not reflect the impact of the Iran war on crude oil prices. The consumer price index at 0.9%, as expected, accelerated to its highest monthly reading in almost four years in March as the Middle East conflict sent energy prices sharply higher.

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Sectors

Update: Gold Moves Lower Again as Dollar Rises On U.S. Retail Sales Surge and Hopes of An End To Middle East War

(Updates prices.)Gold prices were down a second day midafternoon Tuesday as the dollar rose after U.S. retail sales rose above expectations last month, while talks between the United States and Iran could see an end to the Middle East war that has sent the price of oil and other commodities higher.Gold for May delivery was last seen down US$105.50 to US$4,723.30 per ounce.The U.S. Census Bureau on Tuesday said March retail sales rose by 1.7%, up from a revised 0.7% a month earlier and ahead of the consensus estimate for a rise of 1.5%, according to Marketwatch. The rise was the highest in more than three years, CNN reported, but came on a record jump in gasoline prices due to the U.S. war on Iran.Talks to end the war are expected to begin in Pakistan as a two-week ceasefire is set to end tomorrow. A deal could see an end to the closure of the Strait of Hormuz and lower high prices for oil and other commodities trapped in the Persian Gulf. However, Iran has not publicly confirmed it will send negotiators to Pakistan to meet with the United States, though the Wall Street Journal reports Iran has told mediators it will send a team to the talks."Gold is consolidating as traders assess the prospects for renewed US-Iran talks and the approaching ceasefire deadline. Its near-term trajectory remains closely linked to developments in the Middle East, given the potential spillover into inflation expectations, the dollar, bond yields, and US rate outlook," Saxo Bank wrote.The dollar was higher early, with the ICE dollar index was last seen up 0.33 points to 98.43. Treasury yields were also higher, with the yield on the U.S. two-year note up 6.3 basis points to 3.788%, while the yield on the 10-year note was paying 4.297%, up 4.3 points.

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Sectors

Sector Update: Consumer Stocks Ease in Afternoon Trading

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Commodities

Zelenskyy Says Druzhba Pipeline Restored, Fuel Supplies Secured for April-May

Ukraine's President Volodymyr Zelenskyy said Tuesday that the Druzhba pipeline has been restored, as Kyiv pushes for energy funding and protection of its infrastructure.Zelenskyy said in a post on X that repair work on the Druzhba oil pipeline segment damaged by a Russian strike has been completed, allowing operations to resume.He cautioned that "no one can currently guarantee that Russia will not repeat attacks," despite efforts to restore pipeline functionality and safeguard infrastructure.The pipeline restoration is linked to the expected unblocking of a European Union support package already approved by the European Council, he said.Zelenskyy added Ukraine has fulfilled its commitments under initial European Union negotiation clusters and called for continued sanctions pressure on Russia alongside efforts to diversify Europe's energy supplies.Ukraine is also coordinating closely with partners to ensure stable energy cooperation as global disruptions linked to the Iran conflict impact fuel markets, Zelenskyy added.He noted that agreed fuel supply volumes for April and May have been fully secured.Ukraine is also preparing for an Energy Ramstein meeting later this week, aimed at accelerating funding efforts for energy system recovery and strengthening protection of critical infrastructure, he added.