US STOCKS-S&P 500 ends near flat as investors focus on US-Iran war

MGM Resorts International

24/09/2026 21:00

Fed Governor John Williams says another rate hike this year is reasonable
Oracle slips, Blue Owl down after report on force majeure notice
Meta gains after launch of AI gadget
Updates with market close
By Noel Randewich and Johann M Cherian
Sept 24 (Reuters) - The S&P 500 ended near unchanged on Thursday, with Microsoft dipping and Meta Platforms rising, as uncertainty about the Middle East lifted oil prices and Treasury yields.
The S&P 500 and Nasdaq rebounded from session lows after Reuters reported US and Iranian negotiators were exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.
US and Iranian leaders exchanged barbs this week at the UN General Assembly. Brent crude LCOc1 prices rose over 3% to nearly $107 per barrel after a Houthi missile attack on Saudi Arabia revived fears of supply disruptions.
"This just reinforces the view that we're dealing with one major market catalyst right now," said Bill Northey, senior investment director at U.S. Bank Wealth Management. "It's really all about oil and inflation and the effect on interest rates, and then the interest rate cascading across the capital markets."
AI heavyweights were mixed, with Microsoft MSFT.O and Broadcom AVGO.O losing ground, while Advanced Micro Devices AMD.O rose.
Meta Platforms META.O climbed, a day after the social media company unveiled a small handheld gadget for use with its recently launched AI assistant.
Oracle ORCL.N fell after a report said the company sent a "force majeure" notice to a New Mexico data center. Shares of Blue Owl OWL.N, the project's developer, also fell sharply.
Treasury yields rose, with the 30-year Treasury bond US30YT=RR yield reaching its highest since 2004. Higher yields make safe-haven Treasuries relatively more attractive to investors than stocks with uncertain returns. 
    According to preliminary data, the S&P 500 .SPX lost 2.20 points, or 0.03%, to end at 7,703.83 points, while the Nasdaq Composite .IXIC gained 1.76 points, or 0.01%, to 26,937.79. The Dow Jones Industrial Average .DJI fell 162.41 points, or 0.32%, to 51,349.18.
The S&P 500 this week has traded just under 19 times expected earnings, its lowest valuation since 2023, according to LSEG data. AI-related heavyweights are responsible for much of the recent increase in earnings expectations.
US President Donald Trump welcomed Chinese President Xi Jinping to the White House for a summit expected to be heavy on symbolism but light on substance related to issues including AI, trade, Taiwan and the war in the Middle East.
Data on Wednesday suggesting strong business activity has led to increased expectations the Federal Reserve will raise interest rates again following its 25-basis-point hike last week. Traders are now pricing in a nearly 70% chance of a hike next month, according to the CME FedWatch Tool.
New York Fed President John Williams, who has a vote on the Federal Open Market Committee, on Thursday said it was reasonable to think that the US central bank might need to raise interest rates again before the end of the year.
MGM Resorts MGM.N slumped after media mogul Barry Diller's People Inc PPLI.O withdrew its proposal to purchase the casino operator.

S&P 500's forward PE sinks to lowest since 2023 https://fingfx.thomsonreuters.com/gfx/mkt/lgpdblbyzpo/Pasted%20image%201790269023304.png
 (Reporting by Johann M Cherian and Avinash P in Bengaluru; Editing by Joyjeet Das and David Gregorio)
 ((johann.mcherian@thomsonreuters.com))