Global stocks and bonds fell sharply as ceasefire hopes between the United States and Iran deteriorated, with conflicting signals from both sides deepening uncertainty on Day 27 of the ongoing conflict. S&P 500 futures dropped 0.9% to session lows as of 8:00am ET, while Nasdaq futures slumped more than 1%, according to reporting from ZeroHedge.

The market selloff intensified after Axios reported that the Pentagon is actively developing military options for a 'final blow' against Iran, potentially involving ground troops and a massive bombing campaign. President Trump urged Iran to 'get serious' about negotiations 'before it was too late,' while Tehran publicly denied any talks were occurring and rejected US deal terms outright. Iran's stated conditions for ending the conflict included sovereign control over the Strait of Hormuz and the introduction of tolls for safe passage through the waterway.

A US-imposed delay on strikes targeting Iranian energy infrastructure is set to expire within approximately 48 hours of the report, adding urgency to the standoff.

Oil markets surged in response, with Brent crude rising 3.8% to above $106 a barrel — putting it on track for its biggest monthly gain in more than three decades. The Trump administration is said to be examining potential consequences if prices spike to $200 a barrel. The oil rally reignited inflation concerns and pushed Treasury yields higher, with two-year yields rising four basis points to 3.93% and the 10-year yield climbing back to 4.39%. The US dollar also moved higher. Gold fell below $4,450 an ounce.

All seven major technology stocks traded lower in premarket sessions, with Meta down 1.3%, Nvidia down 1.2%, Alphabet and Amazon each down 1%, Tesla down 1%, Microsoft down 0.4%, and Apple down 0.2%.

Memory-chip stocks came under additional pressure after Google researchers unveiled TurboQuant, a new AI model compression technique that could reduce memory demands for AI workloads. Micron fell 2% and Sandisk declined 3%, though some market participants argued the efficiency gains could ultimately increase overall demand.

Wolf von Rotberg, strategist at Bank J Safra Sarasin, noted: 'If Iran were to signal willingness to negotiate and an end to the closure of the Strait of Hormuz became more likely, equity markets may quickly move back to previous highs. Yet Iran has so far declined all offers to talk as time is on their side.'

BlackRock President Rob Kapito warned that investors may be underestimating war-related risks. 'What if this disruption is a week, six months, a year — what is it going to mean for the companies that I own?' Kapito said. 'My biggest concern is that people aren't looking at this — they're just making the assumption' for an optimistic outcome.

In private credit markets, concerns mounted after Jefferies reported earnings that missed Wall Street estimates due to losses on credit positions, and an Ares private credit fund posted its steepest monthly loss on record. Former Goldman Sachs CEO Lloyd Blankfein issued a warning about 'fire' risk in private markets, though executives from Apollo, Blackstone, and Blue Owl stated they see no evidence of rising systemic risks or defaults.

On the corporate side, Equitable Holdings and Corebridge Financial announced an all-stock merger valuing the combined entity at $22 billion. Blackstone is reportedly close to acquiring Rowan Digital Infrastructure in a deal potentially exceeding $10 billion. Olaplex surged more than 50% after Henkel agreed to acquire the hair-care brand for $1.4 billion. Kodiak Sciences climbed 43% on positive late-stage trial data for a diabetic retinopathy treatment.

JPMorgan projected approximately $65 billion in equity buying and bond selling tied to March-end portfolio rebalancing, while Goldman Sachs estimated a more modest $13 billion in related activity.

Source: https://www.zerohedge.com/markets/stocks-bonds-slide-ceasfire-hopes-fade