US, European stocks waver as markets eye Middle East peace progress

US and European equities wavered as investors monitored fragile signs of progress in a U.S.-Iran truce and weighed the economic implications of a war-driven energy shock. Markets showed a mixed tone rather than a decisive directional move.

Tech earnings provided some support: strong results from Intel and other technology names helped lift the Nasdaq, while the S&P 500 posted modest gains and the Dow Jones Industrial Average finished lower. Market movers also included moves in Treasury yields, with the two-year note yield slipping about 4.3 basis points to roughly 3.783%, a read market participants tie to expectations for Federal Reserve policy.

On the commodity side, gold ticked higher as investors balanced inflation worries and geopolitical risk, though analysts noted the metal was still on track for a weekly decline. Oil market headlines — including disruptions to shipping and concerns about supply through key chokepoints — kept energy prices elevated and remained a central risk for both European and global growth outlooks.

The wider context underscores Europe’s vulnerability to energy cost shocks given its import dependence, which can feed through to corporate profit guidance and growth forecasts. Companies reporting results have given mixed forward guidance, reflecting an environment where earnings resilience is tested by higher input costs tied to the conflict.

Strategists say markets are likely to remain headline-driven in the near term; key drivers to watch are concrete advances in peace talks, oil price trajectories, moves in bond yields and upcoming macro data that could influence central bank messaging. Absent clear diplomatic breakthroughs, volatility and sector divergence are expected to persist.