Stock Market Impact: The S&P 500 index rose 0.4% to 7,546.42 points and the Nasdaq Composite gained 0.4% to 26,775.35 points after reports that Washington and Tehran reached a deal to extend the cease‑fire and resume nuclear negotiations, pending President Donald Trump's final approval. The Dow Jones Industrial Average remained unchanged at 50,644.27 points.
Listed Companies and Sectors: HP Inc fell 1.2% despite issuing current‑quarter profit guidance that beat expectations. Salesforce.com slipped 2.5% after providing lower‑than‑anticipated current‑quarter revenue guidance. Marvell Technology reversed pre‑market losses and edged higher following its first‑quarter results. Consumer‑discretionary retailers Abercrombie & Fitch and Bath & Body Works posted “decent” earnings, supporting optimism in discretionary stocks. Drone manufacturers Unusual Machines and AeroVironment rallied after a Wall Street Journal report that the U.S. administration was discussing funding for these firms.
Investment Flows: The article notes that the market reaction was driven by geopolitical expectations rather than direct foreign investment news; however, the perceived reduction in Middle‑East tension could ease risk‑off sentiment and support continued foreign portfolio inflows.
Interest Rates, Inflation, and Liquidity: Core personal consumption expenditures (PCE) price index rose 3.3% year‑over‑year in April, the highest since November 2023 and above the Federal Reserve’s 2% target. Headline PCE increased 3.8% YoY, the highest since May 2023. On a month‑over‑month basis, core PCE rose 0.2% in April, below the 0.3% estimate. Both measures matched consensus forecasts. These inflation readings keep pressure on the Federal Reserve’s policy stance.
Fiscal or Monetary Policy: No new fiscal or monetary policy actions were announced; the focus remained on inflation data and the geopolitical development.
