Equities rally on Middle East peace agreement – Stocks rebounded at the close a holiday shortened week after U.S. President Trump signed an interim peace deal with Iran, paving the way for a reopening of the Strait of Hormuz. The S&P 500 jumped 1.2% over the session, reversing much of yesterday's slide after a more hawkish than expected FOMC meeting, with the Nasdaq even stronger on news that Intel has struck a chipmaking deal with Apple. Despite a positive tone in markets, and WTI trading around recent lows of $77 per barrel, the front end of the U.S. government debt market remained under pressure. Yields on the 2-year Treasury note traded at 4.18%, just a shade off yesterday's 2026 high. However, longer-dated debt continues to perform better, with the 10-year Treasury yield rallying to 4.45% and the 30-year down to 4.9%, a three-month low. Finally, the shift higher in short-term U.S. rates markets continues to support the dollar, with this moving to a new 2026 high against a trade-weighted basket of currencies. 

^{Source for all data: Bloomberg, FactSet}