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US 10-Yr Treasury Yield Drops 2.4 Basis Points to 4.37%, 2-Year Rate Slides 2.2 Basis Points to 3.9% Early Friday

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US Equity Markets End Lower as Conflicting US Signals on Iran War Weigh on Sentiment

US equity indexes ended lower on Thursday amid conflicting signals from the US on the war with Iran, triggering renewed concerns that the conflict will drag on.* Iran has created a government agency to vet and tax vessels seeking passage through the Strait of Hormuz, the Associated Press reported, citing Lloyd's List Intelligence. Tehran is reviewing the latest US proposals for ending the war.* US initial jobless claims last week rose to 200,000 from an upwardly revised 190,000 in the previous week, compared with expectations for 205,000 in a survey of analysts compiled by Bloomberg.* June West Texas Intermediate crude oil rose $1.28 to settle at $96.36 per barrel, while July Brent crude, the global benchmark, was last seen up $0.61 at $101.88.* Zoetis (ZTS) shares fell 22%, the steepest decline on the S&P 500, after the company reported Q1 adjusted earnings and revenue below market expectations and scaled back full-year guidance.* Datadog (DDOG) shares rose 31%, the biggest gain on the S&P, after the company raised its full-year outlook and posted Q1 results that topped Wall Street expectations.

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Japan

US Equity Indexes Fall as Iran Plans to Control Hormuz Transit, Washington Mulls Restarting Operation Freedom

US equity indexes were lower ahead of Thursday's close as Iran reportedly set up an agency to control shipping in the Strait of Hormuz, and Washington considered restarting defence operations to provide safe passage for ships stranded at the critical waterway.The Nasdaq slid 0.3% to 25,755.7, after touching a record 26,036.38 intraday amid concern that a peace agreement between the US and Iran could be at risk. The S&P 500 retreated 0.4% to 7,336.5 after hitting an all-time high of 7,385.02 earlier in the session. The Dow Jones Industrial Average fell 0.6% to 49,592.8 in the final leg of trading.Iran has created a government agency to vet and tax vessels seeking passage through Hormuz, an Associated Press report cited a shipping data company Thursday. Tehran has laid out a new set of rules for vessels seeking to transit the chokepoint through which about 20% of global crude oil flows, according to a document seen by CNN.Entitled "Vessel Information Declaration," the document is an application form issued by Iran's newly created Persian Gulf Strait Authority, and it must be completed by all transiting vessels to ensure safe passage, CNN reported. The document was shared with CNN by the Lloyds List and another shipping industry source who wished to remain anonymous, according to the news report.Meanwhile, the Trump administration is looking to restart an operation to guide commercial ships through Hormuz with naval and air support as early as this week, after Saudi Arabia and Kuwait lifted restrictions on US access to their bases and airspaces, The Wall Street Journal reported Thursday, citing Pentagon officials.The US is still awaiting Iran's response to its peace proposal. The two countries are said to be working with mediators to formulate a one-page framework to restart talks aimed at ending the war and reopening Hormuz.West Texas Intermediate crude oil futures added 0.7% to $95.75, while Brent crude futures declined 0.2% to $101.03. Both WTI and Brent futures are off session lows of more than 3% each.

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Japan

US Equity Indexes Mixed Amid Planned Layoffs Surging to Third-Highest Since 2009, Iran Peace Deal in Works

US equity indexes traded mixed midday Thursday as investors weighed a surge in planned April layoffs to the third-highest since 2009, ahead of Iran's response to a Washington proposal to restart peace talks.The Nasdaq traded 0.6% higher at 25,981.1 after touching a record 26,036.38 intraday. The S&P 500 was up 0.1% to 7,374.7 after hitting an all-time high of 7,385.02 earlier in the session. The Dow Jones Industrial Average, however, fell 0.2% to 49,830.5, after briefly trading above the 50,000 mark. Its all-time high is 50,512.79.The US and Iran are edging toward a temporary pact to halt the war, sources and officials told Reuters on Thursday, with Tehran reviewing a proposal to stop the fighting but leave the most contentious issues unresolved.The two countries are working with mediators to formulate a one-page framework to restart talks aimed at opening the Strait of Hormuz, with negotiations possibly starting in Pakistan next week, The Wall Street Journal reported.West Texas Intermediate crude oil futures dropped 3.2% to $92.06, and Brent crude futures slumped 3% to $98.20, extending declines on expectations of a reopening of Hormuz, the chokepoint for about a fifth of global crude oil flows.In economic news, employers in the US announced 83,387 job cuts in April, up 38% from March, Challenger, Gray & Christmas said Thursday. The two previous highs were 105,441 job cuts recorded in April 2025 and 671,129 in April 2020, the global outplacement firm added.

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