(Updates prices, adds AI concerns)
* Trump unhappy with latest Iranian proposal, official
says
* Tech stocks stumble as investors focus on AI spending
boom
* BOJ holds rates; Fed, ECB and BoE also to stand pat
this week
By Harry Robertson and Ankur Banerjee
LONDON/SINGAPORE, April 28 (Reuters) - Stocks fell and
oil rose on Tuesday as investors assessed the stalemate in the
Iran conflict and worried the AI boom was losing momentum, while
the dollar climbed.
The U.S. was reviewing Tehran's latest proposal to resolve
the war. A U.S. official said President Donald Trump was unhappy
with the plan as it did not address Iran's nuclear programme.
The two-month-long conflict is at an impasse and energy and
other supplies are still failing to cross through the critical
Strait of Hormuz, pushing oil prices above $110 a barrel on
Tuesday.
Brent crude oil rose 3% to $111.40 a barrel, a
three-week high, while U.S. oil was up 3.8% at $100.
EARNINGS SEASON AND AI IN FOCUS
Oil prices have steadily climbed in recent days as hopes
have ebbed for an imminent peace deal, pushing up bond yields
around the world .
Futures for the U.S. benchmark S&P 500 stock index
fell 0.7% on Tuesday, while those for tech-focused Nasdaq
dropped 1.3%.
"Earnings season has helped markets look through the
disruption, but the longer key oil flows remain constrained, the
greater the risk that higher energy costs begin to bite," said
Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Tech stocks related to OpenAI, such as Oracle and
CoreWeave ( CRWV ), fell in pre-market trading after the Wall
Street Journal reported the company has missed its goals for new
users and revenue in recent months.
Europe's STOXX 600 index dropped 0.5%, with the
tech sector down 1.7% as investors focused on concerns about the
boom in AI spending.
The U.S. S&P 500 hit another record on Monday after
rising for four weeks on optimism over a possible peace deal and
ongoing excitement around AI.
But investors are focusing this week on earnings from U.S.
tech giants Microsoft ( MSFT ), Alphabet, Amazon ( AMZN )
, Meta Platforms ( META ) and Apple ( AAPL ) that will
test the AI-driven rally.
Elsewhere, the dollar index climbed 0.4% as the pound
fell 0.5% and the euro dipped 0.35% .
The dollar has been one of the few safe-haven assets during the
Iran conflict, although it has given up many of its March gains
in the last few weeks.
"The twists and turns of U.S.-Iran peace negotiations
continue to buffet markets," Nick Rees, head of macro research
at Monex Europe, said, adding doubts over the progress of peace
talks had pushed the dollar higher.
BANK OF JAPAN SPLIT ON RATES
The BOJ left short-term rates unchanged on Tuesday at 0.75%,
in the first of several central bank meetings this week that
could provide evidence of the conflict's economic impact.
"The 6-3 vote split and the stronger language on future
policy adjustment suggest the bar for another hike may be
falling," said Charu Chanana, chief investment strategist at
Saxo.
The yen initially strengthened but was last around
0.2% lower at 159.68 per dollar, putting it near 160. A breach
beyond that threshold has markets worried Tokyo might step in to
support the currency.
Japan's Nikkei stock index fell 1% from a record
high hit on Monday.
Global monetary policy is in focus this week, with the U.S.
Federal Reserve, the Bank of England and the European Central
Bank due to announce decisions after the BOJ.
All are expected to keep rates unchanged but market
attention will be on comments from policymakers on pricing
pressure.