NEW YORK, May 28 U.S. stocks turned higher on Thursday and European shares pared their losses following reports that the United States and Iran have reached an agreement to extend the ceasefire and launch negotiations, after the two nations exchanged air strikes.
The S&P 500 and the Nasdaq reversed earlier losses, while European shares, though off session lows, remained sharply lower
The agreement, reported by Axios, still needs the approval of U.S. President Donald Trump, and comes after Iran targeted a U.S. air base in Kuwait and the United States struck what Washington described as an Iranian drone complex near the Strait of Hormuz. President Trump earlier rejected reports that Washington and Tehran had reached a compromise deal.
A raft of economic data showed first-quarter U.S. GDP grew at a more sluggish pace than originally reported, the saving rate sank to its lowest level since June 2022, inflation continued to heat up, and new orders for core-capital goods – a barometer for corporate spending plans – unexpectedly dropped. The combination of weak GDP and rising price growth presents the U.S.