June 16, 2026

Major stock indexes are trading higher after a peace agreement between the United States and Iran was announced

International

Over the weekend, the United States and Iran reached an agreement to halt the armed conflict and begin a 60-day formal negotiation period, with the signing of the final document scheduled for next Friday in Geneva. This pact includes the immediate reopening of the Strait of Hormuz and a de-escalation of regional tensions. As a direct consequence, the crude oil market registered an approximate 10% drop compared to the previous week, placing the price of Brent crude at around $80 per barrel this morning.

Meanwhile, last Friday, the aerospace company SpaceX made its debut in the financial markets with an initial public offering (IPO) priced at $135 per share, raising $75 billion, the largest amount of capital raised in an IPO to date. Yesterday, the stock price on the Nasdaq closed at $192.5, marking an increase of more than 40% since Friday.

In this context, the main US stock indices continued their upward trend at the start of the week, continuing Friday's upward move. The Nasdaq led the gains with a 3.1% increase, while the S&P 500 rose 1.7% yesterday, and the Dow Jones gained 0.7%. With these performances, the indices have accumulated year-to-date gains of 14.8%, 10.4%, and 7.5%, respectively.

Regarding fixed income, the US Treasury yield curve compressed slightly yesterday. The 1-year Treasury yield remained unchanged at 3.84%, while the 3-year Treasury yield settled at 4.11%, compared to 4.14% on Friday. Meanwhile, the 10-year Treasury yield also saw a slight decrease, from 4.48% to 4.45%.

Finally, the Bank of Japan held its monetary policy meeting, and on Tuesday morning (local time) announced its decision to raise its benchmark interest rate from 0.75% to 1.0%, reaching its highest level since 1995. The monetary policy board argued that the increase was due to the latent risk of core inflation exceeding the annual target of 2%, driven by the earlier rise in oil prices and the weakness of the yen.

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