Reports of Pakistan-mediated talks to ease US-Iran tensions lift equities ahead of Fed Chair Warsh’s Jackson Hole address.
The S&P 500 rose after Pakistan’s army chief reportedly delivered a proposal to Iranian leaders aimed at reducing US-Iran tensions. The plan includes easing economic sanctions on Iran under a framework promoted by Islamabad, sparking optimism for a potential breakthrough.
Markets had faced pressure in the past week despite stable fundamentals, with the deadlock weighing on sentiment. Previous de-escalation headlines failed to sustain gains, but recent discussions between former US officials and Pakistan’s delegation bolstered confidence.
Traders are also awaiting Fed Chair Warsh’s speech at the Jackson Hole Symposium. His stance on financial conditions, following the Treasury’s buyback announcement, could further support the S&P 500 if he adopts a dovish tone.