U.S. stocks edged lower at midday Thursday as Treasury yields rebounded and crude oil climbed back above $100 a barrel, with optimism over an imminent U.S.-Iran agreement fading after Tehran hardened its position on uranium. 

Nvidia Corp.‘s (NASDAQ:NVDA) blockbuster earnings beat failed to extend the AI rally.

According to Reuters, Iran’s Supreme Leader issued a directive stating Tehran’s near-weapons-grade uranium should not be sent abroad, hardening Iran’s position on a key U.S. demand in peace talks.

WTI crude oil climbed 1.9% to $100.08 a barrel by midday, retaking the triple-digit threshold as doubts over Strait of Hormuz traffic and Iran’s tougher uranium stance reignited the war risk premium. Brent crude rose 1.4% to $106.45.

The U.S. 10-year Treasury yield rebounded to 4.61%, up 2 basis points on the day, while the policy-sensitive 2-year yield climbed 4 basis points to 4.11%. The 30-year held above 5% at 5.13%. 

The dollar index rose to 99.4, hitting an April high as the rate differential widened back in the greenback’s favor. Reinforcing the macro backdrop, the S&P Global U.S. Manufacturing PMI jumped to 55.3 in May, the strongest reading since 2022.

Across U.S. equity markets by midday Thursday, losses were broad but contained, with rate-sensitive growth names taking the hardest hit while small caps clung to the green.

The S&P 500 fell 0.3% to 7,414, while the Dow Jones Industrial Average dipped just 65 points ...