Tehran and Washington are racing against a 48-hour deadline to finalize a preliminary deal that could avert further US military action in the region. Should negotiations fail, the US may resume strikes against Iran, which could escalate tensions in the Strait of Hormuz, a critical shipping lane. Despite this uncertainty, strong corporate earnings, particularly from AMD, which surged over 16%, are propelling Wall Street higher, with the Nasdaq 100 and S&P 500 gaining more than 1.6% and 1.1%, respectively.

The broader market is buoyed by significant gains in the semiconductor sector, with Nvidia and Alphabet also posting notable increases. Meanwhile, Brent crude futures have dropped over 8%, reflecting shifting energy dynamics, while falling US Treasury yields are supporting a weaker dollar, benefiting EUR/USD bulls. Precious metals are seeing strong performance, with gold and silver rising 3% and 6%, respectively.

For market professionals, the key takeaway is the interplay between geopolitical developments and corporate earnings, which could dictate market momentum in the coming days. A successful agreement could further energize risk assets, while failure may lead to increased volatility, especially in energy and currency markets.

Source: xtb.com