Dow Jones Jumps 490 Points to Record 51,684.88 After Iran Peace Deal
DOW•U.S.-Iran preliminary peace agreement sent the Dow Jones Industrial Average up 620 points at open and closed at a record 51,684.88, gaining 490.38 points (0.96%). Oil prices fell as Strait of Hormuz reopening prospects weighed on energy markets, while investors await the Fed’s policy decision later this week.
1. Iran Preliminary Agreement Spurs Rally
The U.S. and Iran reached a preliminary agreement to end hostilities and restore shipping through key Middle East routes, including an immediate halt to military operations once a memorandum of understanding is signed in Switzerland on Friday.
2. Record High Dow Close
The Dow Jones Industrial Average jumped 621 points at the opening bell and settled at a record 51,684.88, marking a 490.38 point (0.96%) gain as investor sentiment improved on reduced geopolitical tensions.
3. Oil Prices Decline
Promising talks to reopen the Strait of Hormuz drove oil futures lower, easing pressure on energy stocks and contributing to broader market gains.
4. Fed Policy Outlook
Traders are now focusing on this week’s Federal Reserve meeting, where rates are expected to remain steady and updated guidance on inflation is anticipated.
