S&P 500 rallies on potential US-Iran diplomatic breakthrough

The S&P 500 has rallied following reports of potential diplomatic breakthroughs between the United States and Iran. Pakistan's Chief of Army, Asim Munir, is reportedly carrying a proposal to Iranian leaders aimed at reducing tensions. This mediation effort includes a potential offer to halt the economic siege on Iran and gradually lift sanctions under the framework of the Islamabad Memorandum of Understanding.

Investors are also looking ahead to the Jackson Hole Symposium, specifically focusing on upcoming remarks from the Federal Reserve. Market sentiment remains sensitive to whether central bank leadership will signal a dovish or hawkish stance regarding interest rates and financial conditions in the coming months.