Stock market today: Dow hits record, S&P 500, Nasdaq soar as tech rallies amid US-Iran pact to reopen Hormuz
US stocks surged on Monday, with tech leading the gains, while oil prices sank as investors welcomed a breakthrough US-Iran deal to end hostilities and reopen the Strait of Hormuz.
The tech-heavy Nasdaq Composite (^IXIC) led gains, soaring over 3%, while the S&P 500 (^GSPC) jumped 1.6%. The Dow Jones Industrial Average (^DJI) climbed 0.9% to hit a fresh record on the heels of Friday’s solid gains for Wall Street stocks.
President Trump said late Sunday that the US had reached a ceasefire deal with Iran, calling the agreement “complete” in a post to Truth Social. Talks to finalize the peace deal are expected to begin within 60 days.
The provisional agreement could reopen the crucial Strait of Hormuz waterway to oil tankers as soon as this week, but a return to normal flows is seen as months away. The two sides are set to meet on Friday in Switzerland to formally sign the interim deal, but a lack of detail about its terms is keeping shipowners and other operators wary.
Oil prices sank, with global benchmark Brent crude futures (BZ=F) down 4.7% to around $83 a barrel. Meanwhile, West Texas Intermediate (CL=F) futures fell over 5%, but held above $80 a barrel as concerns over supply disruptions eased.
In individual stocks, Fox (FOX, FOXA) shares tumbled 15% after the media giant said it would buy Roku (ROKU) in a $22 billion deal. The streaming pioneer’s stock edged down 1%, erasing premarket gains to back off on Friday’s 20% gain.
Wall Street enters the week with momentum following SpaceX’s (SPCX) blockbuster public debut on Friday. Shares of the Elon Musk-led company rose nearly another 20% on Monday.
Looking ahead, the week’s highlight is the Federal Reserve’s policy decision, seen as highly important as hot inflation readings spur debate about the odds of an interest rate hike this year. Traders are pricing in better than a 98% probability that the Fed leaves rates unchanged on Wednesday, per CME FedWatch data.
The NYSE and Nasdaq will both be closed for trading on Friday in observance of Juneteenth.
