MARKETS LIVE: Wall Street ends mixed as Hormuz hopes ease Middle East jitters

4:25pm: Hormuz hopes offset bond yields

Wall Street finished Thursday little changed as hopes for a potential US-Iran deal to reopen the Strait of Hormuz helped stocks recover from sharper losses earlier in the session, although rising Treasury yields continued to weigh on sentiment.

The Dow Jones Industrial Average fell 162 points, or 0.3%, to 51,350, while the S&P 500 slipped 2 points to 7,704 and the Nasdaq added 3 points to 26,939.

Stocks came under pressure early as oil prices climbed and Treasury yields pushed higher, with the 30-year yield reaching its highest level since 2004. But the mood improved after Reuters reported that US and Iranian negotiators were exploring a phased path that could see Tehran reopen the Strait of Hormuz and Washington lift its economic blockade of Iran.

The report offered some relief to markets that have been increasingly focused on the impact of the Middle East conflict on oil prices, inflation and interest rates. Oil remained elevated, however, with Brent trading around $105 a barrel late in the session.

The bond market remains a key concern for investors after strong US economic data and a more hawkish outlook for Federal Reserve policy pushed yields higher this week. New York Fed President John Williams said Thursday that another rate hike this year was a reasonable possibility.

Attention now turns to Costco, which is due to report earnings after the closing bell.

3:40pm: Small cap wrap

• Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) has surpassed $1 million in new customer contract value for the year, signing 180 new contracts across its AI-powered event technology and workforce intelligence platforms.

• Nine Mile Metals hit high-grade copper-equivalent mineralization at its Wedge Mine in New Brunswick, including 5.09% Cu-Eq over 14 metres with a peak sample of 8.59% Cu-Eq.

• Marea Therapeutics, a subsidiary of Lisata Therapeutics, will present Phase 2b TYDAL study data on its lead candidate MAR001, an antibody targeting triglyceride and fat metabolism regulation, at the American Heart Association Scientific Sessions 2026.

• Silver Range Resources has identified new drill targets at its Drum gold project in Utah after compiling decades of historic exploration data from Goldfields Limited, Newmont Mining and Troymet Minerals.

2:35pm: Market movers

• GoDaddy Inc (NYSE:GDDY) shares jumped after reports that cybersecurity company Gen Digital made a preliminary takeover offer for the web services provider, which serves more than 20 million small businesses, creators and entrepreneurs.

• Kinross Gold Corporation (TSX:K) shares fell after the miner cut its 2026 and 2027 production guidance due to weather and recovery issues at La Coipa and lower mining rates, grades and recoveries at Round Mountain.

• Acadia Pharmaceuticals shares dropped after mixed Phase 2 results for its experimental Alzheimer’s disease psychosis treatment remlifanserin showed the 60 mg dose reduced hallucinations and delusions more than placebo but fell just short of statistical significance.

• Everpure shares surged after the data storage company forecast fiscal 2028 revenue of $7 billion to $7.3 billion, well above Wall Street expectations, with analysts citing stronger growth prospects, expanding margins and opportunities in hyperscale markets.

• MGM Resorts International (NYSE:MGM) shares fell after Barry Diller’s People Inc withdrew its $48.30-per-share proposal to acquire the MGM shares it does not already own, a deal that would have valued the casino operator at more than $18 billion.

• Oracle Corp (NYSE:ORCL, XETRA:ORC) shares declined after Bloomberg reported that the company had issued a force majeure notice related to its New Mexico data center project, potentially delaying payments if the facility does not come online as planned in 2028.

1:30pm: Volatility likely to stay

“There is no clear direction for markets,” writes Kathleen Brooks, research director at XTB.

“Are we in a bond crisis or not? Is the Iran war getting worse or is the situation improving? Are enough oil supplies getting through the Strait of Hormuz, and will Ukraine continue to target Russian refinery infrastructure?”

That means that commodity and bond market volatility is likely to remain elevated, according to Brooks.

“It is rare to get movements this volatile in sovereign bond markets, which is another sign that sovereign debt is going through an uncomfortable adjustment period,” said Brooks.

“Why is this? We think it is a combination of rising debt loads and deficits, resilient economic growth and rising inflation risks. These things together are anathema to the bond market and it is no surprise that yields are rising.”

12:15pm ET: Oil rises, FTSE drags

Oil prices continued their surge on Thursday, keeping pressure on equity markets as traders positioned for a tighter supply outlook.

IG chief market analyst Chris Beauchamp said the latest move came despite a lack of fresh headlines around attacks on oil infrastructure or tankers, suggesting markets are pricing in different outcomes for supply.

“Such momentum can become self-sustaining unless the US and Iran can make some progress, and soon,” Beauchamp said.

In London, the FTSE 100 closed 0.2% lower at 10,680 as rising oil prices added to market uncertainty.

11:05am ET: New home sales rise

US new home sales rose more than expected in August, pointing to some resilience in the housing market despite elevated mortgage rates.

New home sales increased to a seasonally adjusted annual rate of 684,000, up from 643,000 in July and well above expectations for 616,000. The median new-home sale price remained at a five-year low, while the average price fell a record $47,700 to $478,700, its lowest level since August 2024.

LPL Financial chief economist Jeffrey Roach said higher mortgage rates and the persistent “lock-in effect” continue to constrain housing turnover. Mortgage rates were around 7.06% as of Wednesday, he noted, while residential investment is expected to subtract 0.3 percentage points from economic growth.

10:15am ET: Back in the red

Wall Street opened lower Thursday as a sell-off in government bonds pushed Treasury yields higher and revived concerns that the Federal Reserve may have more rate hikes ahead.

The Dow Jones Industrial Average fell 157 points, or 0.3%, to 51,354, while the S&P 500 slipped 18 points, or 0.2%, to 7,688. The Nasdaq dropped 164 points, or 0.6%, to 26,772.

The pressure on stocks comes as the bond sell-off gathers pace, with strong economic data and rising oil prices adding to inflation concerns. New York Fed President John Williams said it was “reasonable” to expect another rate hike this year, while former Dallas Fed chief Robert Kaplan argued markets are pricing in too much tightening.

Investors will also be watching the Treasury’s $44 billion auction of seven-year notes at 1pm ET after a weak five-year note auction Wednesday added to upward pressure on yields.

In corporate news, MGM Resorts International (NYSE:MGM) fell about 10% after the Wall Street Journal reported that investor Barry Diller had withdrawn his bid for the casino operator.

Oracle shares dropped 6% after Bloomberg reported the company is seeking protection from payments if its 2.45-gigawatt Stargate data center in New Mexico is delayed beyond its planned 2028 opening.

Meanwhile, investors are keeping an eye on President Donald Trump’s meeting with Chinese President Xi Jinping, with trade and artificial intelligence among the issues expected to feature in discussions.

9.15am ET: US futures pare losses

Dow Jones futures recovered 92 points to 51,764.00, while S&P 500 futures gained 13.75 points to 7,737.00 and Nasdaq 100 futures rose 63.75 points to 30,501.50.

Palo Alto Networks led the gainers at $393.30, while Paychex was the biggest loser at $104.49.

Elsewhere, Everpure reaffirmed fiscal 2027 revenue guidance of $5.03bn–$5.07bn. Greenland Mines also ended its at-the-market share-sale facility following its fundraising.

8:15am ET: Wall Street preview

Dow Jones futures is down 201 points at 51,672.00, S&P 500 futures off 49.25 points at 7,723.25 and Nasdaq 100 futures down 327 points at 30,437.75.

Rising bond yields weighed on sentiment as investors awaited talks between Donald Trump and Xi Jinping.

Among premarket movers, Grail surged to $120.81 after an FDA panel backed Galleri’s cancer detection benefits. Stitch Fix slumped after forecasting annual revenue of $1.31bn–$1.36bn, below expectations.

MGM Resorts fell to $34.69 after Barry Diller’s People Incorporated withdrew its takeover proposal. Darden Restaurants weakened on disappointing Olive Garden sales, while BlackBerry rose ahead of results.

Everpure gained after forecasting fiscal 2028 revenue of $7bn–$7.3bn. Greenland Mines jumped after raising over $42m, while Acadia Pharmaceuticals fell after its Alzheimer’s psychosis trial missed its primary endpoint.

In London, the FTSE 100 stood at 10,722.01, up 16.75 points on the day.

12.45 BST: London shares lose ground

The FTSE 100 slipped 11.15 points to 10,704.57 by lunchtime, while the FTSE 250 fell 15.50 points to 24,251.61.

JD Sports Fashion led the gainers, rising 2.18p to 76.40p. Its half-year results maintained full-year profit before tax and adjusting items guidance of £700m–£800m, despite operating profit before adjusting items falling to £294m. The interim dividend increased to 0.40p.

Rightmove was the biggest faller, dropping 20.83p to 443p.

11.15 BST: FTSE 100 holds steady

The FTSE 100 edged up 9.66 points to 10,718.65 through the morning, while the FTSE 250 slipped 9.23 points to 24,266.57.

Brent crude futures rose $2.05 to $100.17 a barrel as Middle East tensions persisted. US Treasury yields near their highest since 2007 weighed on sentiment, with stronger-than-expected business activity data reinforcing expectations that interest rates would remain elevated.

EU leaders welcomed Pakistan’s mediation efforts in the US-Iran conflict. Tehran demanded the lifting of a naval blockade and the release of frozen assets, while President Masoud Pezeshkian signalled openness to diplomacy.

Shipping through the Strait of Hormuz remained below average, sustaining concerns over energy supplies.

9.00 BST: Global blue chips outperform smaller companies

The FTSE 100 recovered its opening decline to trade virtually unchanged at 10,705, outperforming the wider UK market.

The FTSE 250 fell 0.4%, while AIM lost 0.5% and the FTSE SmallCap index declined 0.3%.

Commodity shares supported the blue-chip index, with BP gaining 1.5%, Glencore rising 1.2%, Antofagasta adding 1.1% and Anglo American advancing 1%. JD Sports and British American Tobacco climbed around 2%.

Mid-cap moves were sharper. Raspberry Pi surged 11.2%, while AO World and Vistry dropped about 7.5% and Ceres Power fell 5.5%.

Standard Life remained the leading FTSE 100 faller, down 3.7%, followed by Kingfisher with a 2.8% decline.

8.15 BST: Energy costs weigh on domestic shares

The FTSE 100 fell 33 points, or 0.3%, to 10,672 in early trading, having dropped as low as 10,667.

Elevated oil prices shaped the opening sector split. Brent remaining above US$103 supported BP, up 1.1%, while renewed energy-cost and inflation concerns coincided with weakness among domestically exposed companies.

Meanwhile, US Treasury yields surged after business activity accelerated more sharply than expected. The ten-year yield climbed around 15 basis points to 5.12%, its highest level since July 2007, while the five-year yield moved above 5% for the first time in 19 years.

Kingfisher dropped 2.6%, and Persimmon lost 1.5%, while Standard Life led the fallers with a 4.5% decline.

Defensive and internationally exposed shares provided some support. Bunzl and Diageo advanced more than 1%, Halma added 0.8% and Smith & Nephew gained 0.6%.

7.00 BST: Bond sell-off weighs on London

The FTSE 100 is expected to open lower on Thursday after strong US economic data triggered a sharp government bond sell-off and knocked Wall Street back from record territory.

IG’s latest indication placed the blue-chip index at around 10,751, down 26 points or 0.2%.

US Treasury yields surged after business activity accelerated more sharply than expected. The ten-year yield climbed around 15 basis points to 5.12%, its highest level since July 2007, while the five-year yield moved above 5% for the first time in 19 years.

The US composite purchasing managers’ index rose to a 62-month high of 58.4 from 56.0. Services activity reached its strongest level in almost five years, while manufacturing growth accelerated, reinforcing expectations that interest rates may remain elevated for longer.

Wall Street retreated in response. The Dow Jones Industrial Average fell 0.7% to 51,511.59, the S&P 500 lost 0.8% to 7,706.03 and the Nasdaq declined 1.1% to 26,936.04, pulling back from Tuesday’s record close.

Oil prices remained elevated, adding to inflation concerns but potentially providing support for BP and Shell. Brent crude traded around US$103.08 a barrel after gaining almost 4% during the previous session, while West Texas Intermediate stood near US$92.16.

Asian markets delivered a mixed response. Japan’s Nikkei advanced 1.3% from a 3-day holiday, but the Shanghai Composite fell 0.8% and Hong Kong’s Hang Seng declined 0.4%.

Australia’s ASX 200 dropped around 0.8%, with miners, banks, property companies and telecoms shares under pressure.

Australian unemployment unexpectedly increased to 4.6% from 4.5%. Employment rose by 39,500, but the increase was concentrated in part-time work, which grew by 45,800 as full-time employment fell by 6,300.

Sterling eased to around US$1.3243, while gold traded close to US$4,283 an ounce.

UK consumer confidence also weakened ahead of next month’s Budget. Expectations for the economy over the coming three months fell to minus 34 in September from minus 28, while expectations for personal finances dropped to minus 15 from minus nine.

On the corporate calendar, Halma, Mitchells & Butlers and On The Beach are scheduled to issue trading updates, while Raspberry Pi and Vistry report half-year results.

US weekly jobless claims and new-home sales will provide the main economic focus later in the session.