U.S.-Iran Peace Deal Sparks 1.3% S&P 500 Rally, Oil Drops 5%
SPY•Stocks rallied on Monday, with the S&P 500 rising 1.3% after Trump announced a U.S.-Iran war-ending deal, boosting the Dow by 607 points and Nasdaq by 2.2%. Oil prices fell 5% to about $80 per barrel as Trump authorized reopening the Strait of Hormuz without tolls.
1. Geopolitical Peace Deal Announcement
President Trump announced a memorandum of understanding to end U.S.-Iran hostilities, with a formal signing planned in Switzerland and immediate authorization to reopen the Strait of Hormuz without tolls.
2. Equity Market Reaction
U.S. stocks surged at the open, with the Dow adding 607 points (1.2%), the S&P 500 climbing 1.3% and the Nasdaq Composite jumping 2.2%, driven by renewed investor confidence in risk assets.
3. SpaceX IPO Momentum
SpaceX shares rose 6% on Monday, extending a 19% gain from its record-setting debut as the company’s market capitalization exceeded $2 trillion, bolstering technology and innovation sectors.
4. Oil Price Decline and Fed Outlook
U.S. crude fell 5% to around $80 per barrel following the Strait of Hormuz reopening, while futures show over 98% odds of unchanged Fed rates, maintaining current borrowing costs.
