(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

May 6 (Reuters) - What matters in U.S. and global

markets today

By Mike Dolan, Editor-at-Large, Finance and Markets

Oil prices slumped and global stocks surged after reports that

the U.S. and Iran were nearing a one-page memorandum to end the

war in the Gulf. That news came shortly after U.S. President

Donald Trump said he would pause his operation to reopen Gulf

shipping, just days after so-called 'Project Freedom' began.

To be fair, broader stock indexes didn't need any excuse to

rally, with newly upgraded AI spending estimates already lifting

Wall Street and global bourses on Tuesday.

I'll get into that and more below.

But first, check out my latest column on what long bonds over 5%

could mean for investors in an uncertain world.

And listen to the latest episode of the Morning Bid daily

podcast. Subscribe to hear Reuters journalists discuss the

biggest news in markets and finance seven days a week.

END IN SIGHT?

The apparent one-page U.S.-Iran deal would involve both sides

unblocking the Strait of Hormuz, among other provisions,

according to an Axios report. The report said the U.S. expects

Iranian responses on key points in the next 48 hours. Oil

continued its slide after the news, with Brent crude trading as

low as $100 per barrel.

MSCI's all-country index hit an all-time high on Wednesday as

global stocks leapt once again on the renewed peace hopes and

robust AI demand. Wall Street futures rose before the bell,

while European shares advanced to a two-week high after the

open.

In Asia, South Korea's KOSPI surpassed the 7,000 mark for the

first time as a semiconductor stock rally saw Samsung

Electronics surge 12% to join the trillion-dollar stock club.

U.S. stocks also touched fresh records on Tuesday. Intel jumped

13% on reports that it was in talks with Apple to produce the

main processors for its devices, while AMD leapt 16% in extended

trading after becoming the latest chipmaker to boost its demand

forecasts.

However, long-dated government bonds have come back under

pressure this week. The U.S. 30-year Treasury yield briefly

topped 5% on Tuesday before recoiling from that level for at

least the eighth time over the past three years.

Gilts were also under the cosh as long-term British borrowing

rates hit their highest point since 1998. That comes ahead of UK

local elections on Thursday, where a poor showing from Prime

Minister Keir Starmer's ruling Labour Party could increase

political pressure on him to step down.

Elsewhere, the yen jumped again on Wednesday for at least the

fourth time in the past week - touching 155 per dollar before

paring some of those gains - on continued speculation about

intervention by Tokyo. It stepped in to support the currency

last Thursday, according to Reuters sources.

A welter of corporate earnings and a big labor-market data week

dominate the rest of the week stateside, with companies

reporting on Wednesday including Disney, Uber and Apollo.

Friday, meanwhile, will bring the latest U.S. employment report

for April, with expectations for a gain of 62,000 jobs, down

from March's 178,000.

Chart of the day

S&P 500 companies are now on track to post aggregate

earnings growth of 28% year-over-year for the first quarter, the

strongest quarterly profit growth since 2021, according to LSEG

research. The estimate stood at just 14% a month ago. Full-year

2026 earnings growth forecasts are now 23%, up from 17% at the

start of this year.

Today's events to watch

* U.S. corporate earnings: Apollo, DoorDash, Uber, Walt

Disney, Warner Bros

* St. Louis Fed's Alberto Musalem and Chicago Fed's Austan

Goolsbee speak

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Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.