S&P 500 falls as dollar steadies on Iran uncertainty

The S&P 500 closed lower on Tuesday as doubts over the Iran ceasefire weighed on sentiment, while the US dollar held near recent highs around 98.37 early on Wednesday. Apple shares fell after announcing a leadership change, while UnitedHealth rose strongly following an upgraded outlook. In the UK, the FTSE 100 edged higher with gains in HSBC and Standard Chartered, while THG jumped after strong revenue. Gold prices moved higher and oil held near $100 as the ceasefire outlook remained unclear.

Equities

The FTSE 100 edged 0.1% higher to 10,628.63 by late morning on Tuesday, supported by gains in financial stocks as hopes of renewed US-Iran talks lifted sentiment. The FTSE 250 rose 0.9%, reflecting stronger momentum in mid-cap names.

HSBC closed around 1% higher on Tuesday morning, while Standard Chartered gained 1.2%, helping push the banking sector up 0.6%. British Land climbed 2.4% after raising its annual earnings outlook, citing stronger demand linked to AI and technology firms. THG surged 7.3% after reporting its strongest first-quarter revenue since 2021, signalling improving trading conditions in e-commerce.

Rio Tinto added 0.4% after posting higher first-quarter iron ore shipments, although it warned of potential supply-chain disruption later in the year due to Middle East tensions. Associated British Foods fell 3.1% after announcing plans to separate Primark from its grocery business. SSE rose 4.2%, extending gains from the previous session after last week’s sharp sell-off tied to proposed UK energy pricing reforms.

In the United States, markets closed lower on Tuesday as geopolitical concerns outweighed earlier optimism. The S&P 500 finished down 0.63% at 7,064.01, while the Dow Jones fell 0.59% and the Nasdaq Composite dropped 0.59%, with losses accelerating into the close.

UnitedHealth stood out, closing 7% higher on Tuesday after raising its full-year profit forecast and beating quarterly expectations, providing the largest positive contribution to the Dow. Amazon ended the session up 0.66% after confirming plans to invest up to $25 billion in AI firm Anthropic, reinforcing confidence in continued spending on artificial intelligence.

Apple closed 2.52% lower after announcing that Tim Cook will step down as chief executive, with John Ternus set to take over. Energy stocks rose, with the sector gaining 1.31% as oil prices moved higher amid Middle East tensions.

Retail sales data released earlier showed a 1.7% increase in March, the strongest rise in a year, driven in part by higher fuel prices.

Forex & Commodities

The US dollar held firm early on Wednesday and briefly reached a one-week high, supported by ongoing uncertainty around the Iran ceasefire. The dollar index later eased slightly to 98.37 after touching its strongest level since mid-April. The euro traded little changed at 1.174, while the British pound was also steady at 1.351 against the dollar.

The Japanese yen strengthened modestly in early Asian trading, with the dollar holding around 159.4 yen, as data showed Japan’s exports rose for a seventh consecutive month. The Australian dollar edged up to 0.7157 and the New Zealand dollar moved higher to 0.5907, both showing mild gains during the same session.

Spot gold rose early on Wednesday to 4762, rebounding after recent weakness as lower oil prices reduced immediate inflation concerns. The move followed an announcement from the United States extending its ceasefire with Iran, although uncertainty remains over whether all parties will agree to the extension. Silver, platinum and palladium also moved higher at the same time, reflecting broader strength across precious metals.

Oil prices were broadly steady in early trading on Wednesday after rising the previous day. Brent crude traded around 98.51, having earlier touched 99.38, while US crude held near 89.53 after briefly moving above 90.71 at the open. Shipping through the Strait of Hormuz remains heavily disrupted, with traffic still limited.