U.S. stocks held modest midday gains Thursday as tentative Lebanon–Israel diplomatic overtures introduced a fragile layer of optimism into an otherwise tense geopolitical backdrop.
• iShares Expanded Tech-Software Sector ETF stock is testing key support levels. What’s behind IGV weakness?
In a late-night post on Wednesday, President Donald Trump warned that all U.S. military assets would remain positioned near Iran “until such time as the real agreement reached is fully complied with,” underscoring the conditional nature of any de-escalation.
Tehran, meanwhile, accused Washington of breaching ceasefire terms and reiterated threats against vessels awaiting transit through the Strait of Hormuz, which remained shut — a stark reversal from Wednesday’s relief-driven rally that had sent equities higher while triggering a sharp unwind in energy prices and bond yields.
A fresh geopolitical development offered some relief. Israeli Prime Minister Benjamin Netanyahu confirmed that Lebanon had requested direct talks, with Israel agreeing to engage. A senior Lebanese official signaled that negotiations would require U.S. guarantees and begin with a temporary ceasefire framework.
In commodities, WTI crude rose 3.8% to $98.01 per barrel, paring earlier gains after briefly reclaiming the $100 level.
Across U.S. equities, gains remained narrow but broadly distributed by midday, with consumer discretionary and …