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US stocks near record highs as oil falls on Iran deal hopes

financeMay 7, 20269112

On May 7, 2026, the S&P 500 and Nasdaq Composite hovered within sight of record highs as oil prices tumbled on rising optimism that U.S. and Iranian negotiators had moved closer to a diplomatic agreement. Brent and West Texas Intermediate crude slid, pulling energy stocks lower while technology and growth shares held most of the market's gains. Traders treated the oil drop as easing near-term inflation risks, which supports equities even though gasoline and mortgage costs remain elevated for households. That matters because lower energy-driven inflation would give the Federal Reserve more policy flexibility and help sustain investor appetite that keeps benchmarks near all-time peaks.

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