US, Iran officials meet at UN as markets swing on headlines

Market snapshot:

• Gold added $22, reaching $4364
• 10-year Treasury yields slipped 6 basis points to 4.96%
• WTI crude dropped $3.36 to settle at $89.02
• NZD was the top performer while CAD lagged
• The S&P 500 held flat, but the Nasdaq gained 0.8%

Attention was fixed on Iran as its officials gathered with counterparts in New York for the UN sessions. Earlier, a Japanese media report claimed Iran would open the Strait of Hormuz if the US lifted its blockade. That sounded like a potential concession, but multiple denials followed and unwound the initial losses in crude prices. The trend picked up steam when Trump, again at the UN, hinted a deal might materialize after the midterms.

Shortly afterward, though, Trump returned to note that US and Iranian officials had a three-hour meeting that went well, with another session planned. Details from that meeting varied widely — some suggested the old memorandum of understanding still underpinned Iran's position, while others pointed to greater flexibility. As a result, oil dipped again late in the session, risk assets firmed, and the dollar weakened.

The whole session was essentially a tug-of-war over Iran headlines shaking markets, but Barkin's remarks indicated the Federal Reserve is weighing a mid-cycle adjustment, possibly similar to the 75 basis point move seen in the mid-1990s.

Equities stayed on two tracks — one driven by macro, the other by AI — which often overlapped. Micron sat near the top of the leaderboard as semiconductor demand revived, while homebuilders gained on expectations of a slower rate-hike path, possibly tied to easing tensions with Iran.

Overall, market moves were modest, outside of oil, as traders awaited more concrete developments.