Iran Deal Hopes Drive Yields, Oil Down; Stocks Up

The benchmark U.S. 10-year note yield dropped 9.4 basis points to 4.576%, and U.S. crude fell $5.89 to settle at $98.26 a barrel. President Donald Trump stated negotiations with Iran were in final stages, contributing to renewed positive market sentiment.

Major U.S. stock indexes saw significant gains, with the Dow Jones Industrial Average rising 1.18% to 49,945.54, the S&P 500 gaining 0.93% to 7,421.81, and the Nasdaq Composite advancing 1.33% to 26,214.83. Expectations for Nvidia's first-quarter earnings remained high, with revenue forecast to jump nearly 80% to about $79 billion, according to an LSEG survey of analysts, boosting chip stocks.

Despite the positive market reaction, Jake Dollarhide, CEO of Longbow Asset Management, noted underlying pessimism regarding the Federal Reserve's position if oil prices rise again, with Fed funds futures traders pricing in roughly 50% odds of a rate hike by December.