Wall Street indexes hold steady as investors await US-Iran talks

  • Wall Street indexes held steady as investors awaited potential United States-Iran talks.
  • Brent crude neared $100 while the 10-year Treasury yield reached 4.9%.
  • The Nasdaq had closed at a record high Monday after Meta's 11.3% surge.

U.S. stock indexes were little changed Tuesday after strong AI-driven gains in the previous session, as investors awaited possible talks between the United States and Iran that could end their six-month-old conflict. Brent crude traded near $100 a barrel and the 10-year Treasury yield stood at 4.9%, two key market indicators reflecting geopolitical and inflation concerns. A senior Iranian official told Reuters that Tehran could reopen the Strait of Hormuz within seven days if the United States eases pressure. The potential U.S.-Iran discussions are expected on the sidelines of the United Nations General Assembly, followed by a U.S.-China summit on Thursday that traders hope will produce progress on the Middle East conflict and extend the trade truce with Beijing. UBS analysts said an extension of the truce or clearer communication could reduce near-term political uncertainty and support business confidence. The Nasdaq closed at a record high Monday after Meta surged 11.3%, with analysts pointing to downloads of its Muse AI agent exceeding ChatGPT's during its first 13 days. Meta, Alphabet, Amazon.com and Microsoft rose in premarket trading, while Nvidia, TSMC and SK Hynix fell. UBS said Muse offered early evidence that consumer AI agents could gain broad adoption and create monetization opportunities beyond enterprise applications. Traders priced a 57.6% chance of at least a 25-basis-point interest-rate increase in October after the Federal Reserve's hike this month, according to CME Group's FedWatch Tool. Bitcoin fell 1.3% from a seven-month high, weighing on Strategy and Coinbase.

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