Stocks open slightly higher as Treasury yields retreat
Brent crude futures fell to around $87 a barrel on Tuesday after touching $90 earlier in the session, erasing gains that had built on fading hopes for a deal to reopen the Strait of Hormuz. Hopes had dimmed following new demands from both Iran and President Trump.
The reversal came after Bloomberg reported that Pakistan Defense Minister Khawaja Asif said the U.S. and Iran were nearing an arrangement. Al Jazeera reported that a Qatari foreign ministry official said there were advanced talks between Oman and Iran over shipping in the Strait of Hormuz.
The stabilization in oil prices also reversed a rise in government bond yields. Earlier in the day, both the 10-year and 30-year Treasury yields had approached their 2026 closing highs. U.S. stock indexes opened slightly higher following the retreat.
Trading activity has thinned into the summer months, with vacationing Wall Streeters and cautious traders holding off ahead of Wednesday’s July inflation report. U.S. trading volume dropped to one of its lowest levels of the year Monday.