By Stephen Culp NEW YORK, April 14 - Stocks rallied and crude fell on Tuesday as the promise of ongoing talks between the United States and Iran boosted hopes of de-escalation in the Middle East,
Wall Street Surges as US-Iran Talks Revive, Earning Season in Focus
Market Overview and Key Developments
By Stephen Culp
NEW YORK, April 14 - Stocks rallied and crude fell on Tuesday as the promise of ongoing talks between the United States and Iran boosted hopes of de-escalation in the Middle East, while corporate earnings took center stage.
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Recommended Reading
Here are a few articles I recommend to help you make sense of what happened in markets today.
- US, Iran could resume negotiations this week despite port blockade
- The IMF has cut its 2026 global growth forecast as Iran war hits prices
- Viktor Orban's election defeat in Hungary prompts Europe's far right to rethink its MAGA ties
- US producer prices were cooler than expected, but near-term rate cuts from the Fed remain unlikely
- Wall Street banks are reporting booming first-quarter trade revenues, but express caution over oil prices, geopolitical risks
Today's Key Market Moves
- STOCKS: Wall Street rallies while European stocks climb to one-month highs on prospects of Middle East de-escalation
- SECTORS/SHARES: Among the 11 major sectors in the S&P 500, eight close higher, led by communication services; of the three big banks that posted quarterly earnings today, JPMorgan Chase and Wells Fargo dip 0.8%, and 5.7%, respectively, while Citigroup gains 2.6%
- FX: The dollar posts a seventh day of declines amid peace deal hopes
- BONDS: Benchmark U.S. Treasury yields dipped on signs of peace talk progress
- COMMODITIES/METALS: Oil drops on easing supply worries; gold jumps in opposition to the greenback
Today's Talking Points
Inflation and Interest Rates
Bessent says core inflation cooling, rate cuts needed
U.S. Treasury Secretary Scott Bessent expressed confidence that core inflation would continue to come down despite the Iran war, and reiterated his call for the Federal Reserve to cut its key interest rate.
But two of the three major inflation indicators released for the month of March so far show core inflation, which excludes food and energy items, ticking higher. The third, average hourly wage growth, registered a cooler reading than the previous month.
But Fed's Goolsbee says rate cuts might have to wait
Chicago Federal Reserve President Austan Goolsbee said the central bank might need to put rate cuts on hold until 2027 if fallout from the war on Iran delays inflation's long meandering journey down to the Fed's average annual 2% growth rate.
At their last meeting monetary policymakers kept the key Fed funds target rate in the 3.50%-3.75% range, although a majority projected that at least one cut to that rate could likely be appropriate this year.
Small Business Sentiment
U.S. small business sentiment slid to an 11-month low in March as surging oil prices overshadowed benefits from low taxes, according to the National Federation of Independent Business.
The index dipped below the NFIB's 52-year average, while its uncertainty component jumped four points to 92, well above its historical average of 68. The share of survey participants expecting improved business conditions sank to the most pessimistic level since October 2024.
What Could Move Markets Tomorrow?
- Developments in the Middle East
- Energy market moves
- Social media posts from Trump
- Earnings: Bank of America and Morgan Stanley, along with Dow Transports constituent J.B. Hunt
- China industrial output, retail sales (March)
- China first-quarter GDP
- France CPI (March)
- Euro zone industrial production (February)
- India unemployment rate (March)
- Brazil retail sales (February)
- Canada manufacturing sales (February)
- Australia employment (March)
- U.S. Federal Reserve policymakers slated to speak include Fed Board Governor Michael Barr and Fed Vice Chair Michelle Bowman
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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(Reporting by Stephen Culp, editing by Deepa Babington)
