Overview
- U.S. markets rallied for a third straight day, with the Dow closing at a record 50,579.70 after a $294 rise that traders linked to growing hopes for progress in talks between Washington and Tehran.
- Crude moves drove sentiment, with WTI tumbling more than 5 percent to about $98.26 on New York trading earlier in the week and then showing volatility as supply worries reappeared.
- Reports that U.S. officials described the negotiations as showing 'some progress' contrasted with Iranian statements that talks were stalled, leaving upside for stocks limited after initial gains.
- The dollar traded near ¥159, and Tokyo equities climbed in step with Wall Street, with the Nikkei jumping roughly 900 points in morning trade as investors priced lower energy risk.
- Japanese officials are preparing a supplementary budget response to prolonged Middle East tensions, with the prime minister likely to outline details around May 25, and markets will watch oil, negotiation headlines, and U.S. interest-rate signals for the next moves.