Updates to US market open

By Stephen Culp

NEW YORK, April 21 (Reuters) - Wall Street stocks turned mostly lower, while global equities dipped as optimism over peace talks faded and the U.S.-Iran ceasefire expiration loomed.

Two of the three major U.S. stock indexes slipped, while gold dropped and U.S. crude advanced.

The U.S. military said it had seized a tanker linked to Iran in international waters in an apparent action to enforce a blockade as the clock ticked toward the ceasefire's expiry. Washington expressed confidence that peace talks with Iran would proceed in Pakistan.

But Pakistan is awaiting a formal confirmation from Iran that it will send a delegation to Islamabad for a second round of peace talks.

"It’s become very clear that the Trump administration is looking for an off-ramp and will negotiate in a manner that they can claim a win," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. "U.S. investors and global investors are holding their breath, but leaning to a positive outcome when it comes to Iran."

EYES ON AI

Amazon AMZN.O said on Monday it will invest up to $25 billion in Anthropic, reviving the fervor over artificial intelligence-related stocks.

As the first-quarter reporting season heats up, investors will scrutinize AI stocks for signs that massive expenditures on the nascent technology are starting to pay off. Analysts expect aggregate year-on-year tech earnings growth of 46.4%, according to LSEG data.

A report from the Commerce Department showed U.S. retail sales were more robust than analysts expected in March, but much of the upside surprise was driven by a 15.5% surge in gasoline station receipts due to price spikes related to the U.S.-Israeli war with Iran.

Kevin Warsh, U.S. President Donald Trump's pick to succeed Jerome Powell as Federal Reserve chair, appeared before the Senate Banking Committee in the next step toward confirmation. In his opening statement, the former Fed governor pledged to make interest rate decisions "strictly independent" of politics.

The Dow Jones Industrial Average .DJI fell 34.99 points, or 0.07%, to 49,407.09, the S&P 500 .SPX lost 10.22 points, or 0.15%, to 7,098.71 and the Nasdaq Composite .IXIC rose 13.90 points, or 0.05%, to 24,415.85.

EUROPEAN SHARES DIP, GLOBAL STOCKS RISE

European shares were lower amid restrained risk appetite ahead of the ceasefire deadline.

MSCI's gauge of stocks across the globe .MIWD00000PUS fell 1.61 points, or 0.15%, to 1,070.38.

The pan-European STOXX 600 .STOXX index fell 0.77%, while Europe's broad FTSEurofirst 300 index .FTEU3 fell 19.99 points, or 0.81%.

Emerging market stocks .MSCIEF rose 14.66 points, or 0.92%, to 1,615.04. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed higher by 1.04%, to 826.86, while Japan's Nikkei .N225 rose 524.28 points, or 0.89%, to 59,349.17.

The U.S. dollar edged higher on optimism over Iran war negotiations, and after retail sales data signaled economic strength.

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro,
rose 0.19% to 98.26, with the euro EUR= down 0.25% at $1.1757.

Against the Japanese yen JPY=, the dollar strengthened 0.33% to 159.31.

The yield on benchmark U.S. 10-year notes US10YT=RR rose 4.2 basis points to 4.292%, from 4.25% late on Monday.

The 30-year bond US30YT=RR yield rose 2.2 basis points to 4.903% from 4.881% late on Monday.

The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 5.9 basis points to 3.775%, from 3.716% late on Monday.

Oil prices reversed an earlier dip as traffic in the Strait of Hormuz remained halted.

U.S. crude CLc1 rose 3.16% to $92.44 a barrel and Brent LCOc1 rose to $97.02 per barrel, up 1.64%.

Gold prices dropped as the dollar firmed, as investors looked to tentative U.S.-Iran talks and Warsh's Senate confirmation hearing. Spot gold XAU= fell 1.4% to $4,752.02 an ounce.