Reports on negotiations to reopen the Strait of Hormuz trigger a rebound in market risk appetite

Reports indicate that the United States and Iran are discussing a phased agreement to reopen the Strait of Hormuz, triggering a sudden wave of renewed risk appetite in the market. The S&P 500 Index significantly narrowed its losses, while oil prices and yields retreated from their early session highs, with the two-year yield leading the decline. The Bloomberg Dollar Spot Index also pulled back from its intraday high.