Wall Street finished mixed on Tuesday as investors monitored developments in the Iran war and looked ahead to this week’s US-China summit.
The Nasdaq Composite gained 0.45% to a record close of 27,244.28, supported by strength in technology stocks. The S&P 500 was virtually unchanged at 7,764.64, while the Dow Jones Industrial Average fell 185.14 points, or 0.36%, to 51,863.69.
Oil prices declined for a fifth consecutive session following signs of possible progress towards a negotiated outcome in the Iran war. President Donald Trump said US officials had held a “very good meeting” with Iran’s delegation, while Iran reportedly offered to reopen the Strait of Hormuz within seven days.
WTI crude fell 1.24% to US$94.59 a barrel, while Brent declined 1.09% to US$99.25.
Treasury yields also eased, with the US 10-year yield trading around 4.96%. Investors continue to assess the outlook for further Federal Reserve rate increases after the central bank restarted its tightening cycle last week.
Attention now turns to this week’s meeting between Trump and Chinese President Xi Jinping, with AI, tariffs, rare earths and the Iran war expected to feature in discussions.
Australian Market Outlook
Australian shares are set to open modestly higher, with S&P/ASX 200 futures up 18 points, or 0.2%, to 8,822.
The softer oil price could ease some recent inflation concerns, while continued strength in US technology stocks may provide support for the local tech sector.
Investors will remain focused on developments in the Iran war, the US-China summit and the outlook for global interest rates as the session progresses.
