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US Equity Markets Higher After Drop in Crude Oil Prices

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US equity indexes were higher on Wednesday after a decline in crude oil prices and government bond yields amid ongoing negotiations to end the US-Iran war.

* A memorandum of understanding being negotiated between Tehran and Washington calls for US forces to withdraw from Iran's vicinity and lift the blockade of Iranian ports in return for reopening the Strait of Hormuz to pre-war levels, CNN reported, citing Iranian state television.

* The Richmond Fed's monthly manufacturing index rose to 13 in May from 3 in April, more than the 4 estimate in a Bloomberg-compiled survey.

* July West Texas Intermediate crude oil fell $4.34 to settle at $89.55 per barrel, while July Brent crude, the global benchmark, was last seen down $4.41 at $95.17.

* MGM Resorts International (MGM) shares were up about 9%, the second biggest gainer on the S&P 500, after JPMorgan and Truist upgraded the stock and lifted their price targets.

* Boston Scientific (BSX) shares were down nearly 12%, the worst performer on the S&P 500, after Chief Executive Mike Mahoney said at an industry conference that this year has been "a bit more of a challenge" than anticipated. Stifel and Goldman Sachs also lowered their price targets for the stock.

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US Equity Indexes Rise Amid Sliding Crude Oil Prices

US equity indexes ground higher amid a sharp decline in crude oil prices ahead of Wednesday's close as investors parsed ongoing negotiations to end the war against Iran.The Dow Jones Industrial Average traded up 0.4% to 50,677.2. The Nasdaq Composite edged up less than 0.1% to 26,670.1, and the S&P 500 climbed less than 0.1% to 7,523.2. Both the Nasdaq and the S&P 500 were declining before midday.The memorandum of understanding being negotiated between Tehran and Washington will call for US forces to withdraw from Iran's vicinity and lift the blockade of Iranian ports in return for reopening the Strait of Hormuz to pre-war levels, CNN reported, citing Iranian state television. The US denied claims that maritime traffic through the Strait of Hormuz could return to normal within a month of the Iran deal, Bloomberg reported.During an ongoing Cabinet meeting on Wednesday, President Donald Trump said he won't be rushed into a deal, warning that Iran's efforts to outlast him won't work because he doesn't "care about the midterms," CNN reported."Iran is very much intent; they want very much to make a deal. So far, they haven't gotten there ... We're not satisfied with it, but we will be. Either that, or we'll have to just finish the job," Trump said, without elaborating, according to a report from Reuters. "The deal has got to be perfect," he added, insisting that no single country would have control over Hormuz.West Texas Intermediate crude oil futures sank 4.7% to $89.16, and Brent crude futures slumped 4.8% to $94.75.Most US Treasury yields fell, with the 10-year down one basis point to 4.48%. The two-year slipped 1.5 basis points to 4.04%.

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US Equity Indexes Mixed in Midday Trading as Crude Oil Slumps

US equity indexes traded mixed amid a decline in crude oil prices and government bond yields.The Nasdaq Composite fell 0.3% to 26,578.4, with the S&P 500 down 0.2% to 7,506.4, as technology sat at the bottom of sector charts in midday trading on Wednesday. The Dow Jones Industrial Average, however, climbed 0.3% to 50,617.2.The memorandum of understanding being negotiated between Tehran and Washington will call for US military forces to withdraw from Iran's vicinity and lift the blockade of Iranian ports in return for the reopening of the Strait of Hormuz to pre-war levels, CNN reported, citing Iranian state television.The US denied the Iranian TV report that said maritime traffic through the critical waterway could return to normal within a month of the peace deal coming into effect, Bloomberg reported.West Texas Intermediate crude oil futures dropped 3.4% to $90.70, and Brent crude futures slumped 3% to $96.60.Most US Treasury yields fell, with the 10-year down 2.2 basis points to 4.47% and the two-year lower by 1.9 basis points to 4.03%.

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S&P 500, Nasdaq Rally, Middle East Peace Optimism Drive US Equity Futures Higher Pre-Bell

US equity futures were rising pre-bell Wednesday as the S&P 500 and the Nasdaq reached new all-time highs amid continued optimism for an end to the Middle East conflict.Dow Jones Industrial Average futures were 0.2% higher, S&P 500 futures were up 0.3%, and Nasdaq futures were 0.7% higher.The S&P 500 added 0.6% and the Nasdaq rose 1.2% to fresh intraday and closing highs, driven by an upswing in the technology sector.President Donald Trump said in a post on Truth Social that talks with Iran were "proceeding nicely." However, Iran threatened to respond to ceasefire violations after the US military carried out what it called "self-defense strikes" on Iranian missile launch sites and vessels around the Strait of Hormuz. Negotiations to end the war continue.Traders noted the latest round of earnings, with PDD (PDD) posting lower Q1 non-GAAP earnings amid higher revenue.Oil prices were lower, with front-month global benchmark North Sea Brent crude down 2.5% at $94.29 per barrel and US West Texas Intermediate crude 3.5% lower at $90.64 per barrel.The Richmond Fed manufacturing index for May is scheduled to be released at 10 am ET.

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