S&P 500 Nears Record as Dollar Hits Six-Week Lows

The S&P 500 pushed close to record highs as global equities extended gains, while the US dollar fell to six-week lows amid renewed hopes for US-Iran talks. The FTSE 100 edged higher with strong gains in airlines and miners, though BP and Shell declined alongside oil prices. Brent crude remained volatile near $95, while gold eased after hitting a one-month high. Airline shares in the US rallied on merger speculation, and Globalstar jumped sharply on an acquisition by Amazon.

Equities

The FTSE 100 closed 0.25% higher on Tuesday at 10,609.06, ending a three-day decline, while the FTSE 250 rose 2%. Gains were led by financial and industrial stocks as sentiment improved on renewed prospects for US-Iran talks.

In London trading, shares in BP fell 2.4% on Tuesday, while Shell dropped 2.8% as oil prices hovered near $95 per barrel. BP also outlined plans to restructure into two divisions under CEO Meg O’Neill and highlighted strong trading amid volatile energy markets. Banking stocks moved higher, with Barclays up 1.8% and both NatWest Group and Standard Chartered gaining 2.5%.

Mining stocks tracked precious metal prices higher, with Fresnillo rising 4.7% and Hochschild Mining up 4%. In industrials, Intertek surged 12.8% to a one-year high after announcing a potential business split. Travel stocks advanced as oil eased, with easyJet up 5.1% and Wizz Air climbing 8.5%, while Burberry added 2.9%. Imperial Brands fell 4.8% after warning of uncertainty linked to Middle East tensions.

In the US, the S&P 500 closed 1.18% higher on Tuesday at 6,967.38, just below its record high, while the Nasdaq Composite rose 1.96% and the Dow Jones Industrial Average gained 0.66%. Gains were supported by easing inflation data and steady earnings from major companies.

Shares in BlackRock rose 3% after reporting higher first-quarter profit driven by ETF inflows and performance fees. Citigroup climbed 2.6% to its highest level since 2008 after beating profit expectations, while Wells Fargo fell after weaker net interest income.

Airline stocks rallied following merger speculation, with American Airlines jumping 8% and United Airlines rising 2% at Tuesday’s close. Globalstar surged 9.6% after agreeing to be acquired by Amazon, while Johnson & Johnson added 0.9% after posting its latest earnings.

Forex & Commodities

The US dollar traded near six-week lows early on Wednesday, giving back most of its gains since late February as expectations of renewed US-Iran talks improved sentiment. The euro strengthened to $1.179, close to its highest level since early March, while the British pound sterling held steady at $1.357. The dollar index remained subdued at 98.13 during the morning session.

The Japanese yen weakened slightly to 158.9 per dollar, while the Australian dollar held firm at $0.7124 after earlier reaching a one-month high. Currency markets reflected a shift seen late on Tuesday, when investors moved away from the dollar as a defensive holding following signs of diplomatic progress.

Spot gold eased early on Wednesday to $4,826 per ounce after briefly reaching a one-month high earlier in the session. The pullback followed gains seen late on Tuesday, as demand softened with improving risk appetite. Silver rose to $79.88, while platinum traded at $2,112 and palladium at $1,588 during morning trading.

In energy markets, Brent crude slipped early on Wednesday to $94.63 per barrel after falling sharply in the previous session. West Texas Intermediate crude dropped to $90.58, extending losses from Tuesday when both benchmarks declined heavily. The earlier sell-off followed renewed expectations of talks that could ease supply disruptions linked to the Strait of Hormuz.

Oil had previously risen on supply concerns as shipping through the strait remained restricted, though traders have since adjusted positions as diplomatic signals improved. Refiners have continued to seek alternative supply, with US crude shipments commanding elevated premiums in Europe.