Iran Deal Hopes Fuel Market Rally

The US stock market was poised to end the day higher on Wednesday, driven by growing optimism over a potential breakthrough in talks with Iran. The US dollar slipped against a basket of currencies, while crude oil prices edged up. The Dow Jones Industrial Average and S&P 500 futures were seen trading above their respective opening levels, with investors cautiously optimistic about the prospects for an agreement that would ease tensions between Washington and Tehran. In contrast to the upbeat market mood, yields on US Treasury bonds remained under pressure, pushing the benchmark 10-year yield to a near-one-month high. Investors were taking a cautious view ahead of a crucial interest rate decision by the Federal Reserve next week. The Nasdaq futures contract was also seen higher, following strong gains in technology stocks in Asia, where investors have been watching developments in the Iran talks with great interest. The Shanghai Composite Index rose 0.3% to a two-week high, while Japan’s Nikkei 225 slipped into negative territory. In Washington, officials from both sides of the aisle were holding out hope that negotiations would make significant progress by Friday, when US President Barack Obama is set to meet with his senior advisors on the issue.