Wall Street Mixed as Iran Deal Details Loom; SpaceX Surges
Wall Street traded in mixed territory on Tuesday as investors became more cautious about the preliminary peace agreement between the United States and Iran.
Oil prices continued to fall, but the optimism that lifted markets during the previous session began to fade. Investors are now waiting for clearer information about the agreement and its implementation.
Dow Jones Reaches Record High
By 11:39 a.m. ET, the S&P 500 had fallen 0.2% to 7,536.93 points. Meanwhile, the technology-heavy Nasdaq Composite declined 0.5% to 26,552.50 points.
However, the Dow Jones Industrial Average moved in the opposite direction. The index gained 0.8% to reach a record 52,088.62 points, crossing the 52,000 level for the first time.
Deutsche Bank analysts said financial markets had stabilized following the strong wave of optimism surrounding the peace announcement on Monday.
Investors Await U.S.-Iran Deal Details
Major US stock indexes advanced during the previous session after Washington and Tehran announced an agreement aimed at ending their conflict of more than three months.
However, several important details remain unresolved. Investors want greater clarity on the ceasefire, the reopening of key shipping routes and the removal of restrictions on Iranian ports.
Vice President JD Vance acknowledged that several major issues still need to be settled. He is expected to attend the formal signing ceremony in Switzerland.
Strait of Hormuz Could Reopen Friday
President Donald Trump said the Strait of Hormuz could fully reopen by Friday, when US and Iranian representatives are scheduled to formally sign the interim agreement.
Speaking in France at the beginning of the Group of Seven summit, Trump said the waterway was already partially open. He added that ships had started leaving the region.
However, reports suggest that normal shipping operations may take longer to resume.
According to The Wall Street Journal, senior US officials believe the process could require approximately two weeks.
Peace Framework May Extend Ceasefire
Trump said the full text of the agreement would be released on Friday. Other officials reportedly suggested that it could become public within two days.
Although full details remain limited, reports indicate that the memorandum of understanding could extend the current ceasefire by another 60 days.
The agreement is also expected to reopen the Strait of Hormuz and remove the US blockade of Iranian ports.
Brent Crude Falls Below $80
Brent crude futures extended their decline as markets priced in the possible return of oil shipments through the Strait of Hormuz.
The international oil benchmark fell 4.3% to approximately $79.57 per barrel. Brent had already dropped to a three-month low during Monday’s trading session.
The decline reflects a reduction in the geopolitical risk premium that had pushed energy prices sharply higher during the conflict.
However, delays in reopening the strait or complications in the peace talks could revive concerns about global oil supplies.
Federal Reserve Decision Takes Center Stage
Investor attention is also shifting toward the Federal Reserve’s latest two-day policy meeting.
The central bank is widely expected to leave interest rates unchanged when it announces its decision on Wednesday.
Policymakers continue to monitor inflation pressures, including the recent increase in gasoline prices linked to the Iran conflict.
As a result, markets will closely examine comments from new Fed Chair Kevin Warsh following the decision. His first post-meeting press conference could provide important clues about the outlook for inflation and interest rates.
Bank of Japan Raises Interest Rates
The Bank of Japan increased its benchmark interest rate by 25 basis points on Tuesday.
The central bank said it would continue tightening monetary policy if persistent inflation pressures remain. It also announced plans to slow the pace of its monthly bond purchases over the coming quarters.
The decision reflected the BoJ’s continued effort to move away from years of highly accommodative monetary policy.
Reserve Bank of Australia Holds Rates
The Reserve Bank of Australia left borrowing costs unchanged.
However, policymakers warned that they could raise rates again if inflation fails to ease sufficiently.
The central bank said both headline and underlying inflation remain too high, keeping the possibility of further monetary tightening alive.
SpaceX Stock Extends Post-IPO Rally
SpaceX shares advanced for a third consecutive session following the company’s blockbuster stock market debut on Friday.
The continued rally has pushed SpaceX’s market capitalization closer to some of the world’s largest publicly listed companies.
Its valuation is now comparable with established technology giants such as Alphabet, Apple and Nvidia.
Strong investor interest in SpaceX has provided support to the broader market, even as the Nasdaq and S&P 500 struggled during Tuesday’s session.
