Stocks Rise on Iran Talks, Soft PPI Data

U.S. equities advanced Thursday as two distinct catalysts converged: progress in U.S.-Iran peace talks and a producer price index report that came in below expectations. The combination gave investors cover to add risk, pushing major indexes higher across the session. The PPI data reinforced the case that upstream inflation pressures are easing, a signal closely watched by Fed-sensitive traders. Softer producer prices typically reduce the probability of near-term rate hikes and can support equity valuations by compressing discount rates. Meanwhile, diplomatic movement between Washington and Tehran introduced the prospect of reduced geopolitical risk premium in energy markets, where Iranian oil supply dynamics carry meaningful weight. Together, the two developments pulled in the same direction: lower inflation risk, lower geopolitical tension, and a more hospitable environment for risk assets. Energy sector pricing and Fed rate-path expectations are the variables most directly in play. Watch whether subsequent CPI data confirms the PPI softness, and whether U.S.-Iran talks produce a formal framework or stall at the preliminary stage.