Key facts
- Asian stocks advanced amid progress in U.S.-Iran peace talks.
- Oil prices declined as diplomatic progress eased geopolitical tensions.
- Treasury yields rose to their highest level since early 2025.
- Markets are pricing in a 75% chance of a Federal Reserve rate hike in September.
- U.S. stock index futures were subdued as investors monitored U.S.-Iran negotiations.
- The first round of U.S.-Iran talks concluded with an agreement on a roadmap toward a final deal within 60 days.
Asian stock markets advanced and oil prices fell as progress in U.S.-Iran talks eased geopolitical tensions. Treasury yields rose, however, as markets priced in a higher chance of a Federal Reserve rate hike in September. U.S. stock index futures were subdued as investors monitored the negotiations. The first round of talks concluded with an agreement on a roadmap toward a final deal within 60 days. Expectations of a peace deal underpinned a recent rally in U.S. equities, driven by AI optimism and a resilient economy. This week's focus will be on the PCE data, the Federal Reserve's preferred inflation gauge, with markets anticipating a 25 basis point rate hike in September. Comments from Federal Reserve speakers will be closely watched.