Market Rally: Dow Jones Reaches New High, Nasdaq Surges 3% Amid Iran Deal Momentum

Key Points

• The Dow Jones Industrial Average reached a new all-time intraday high, increasing by 1.4% amid news of a preliminary U.S.-Iran peace agreement.

• SpaceX’s stock surged by 10.3% on its first full trading day, adding $239 billion to its market capitalization.

• The Federal Reserve is expected to hold interest rates steady this week with a 98% chance.

Wall Street experienced significant gains on Monday following the announcement of a preliminary peace agreement between the United States and Iran. The Dow Jones Industrial Average rose 1.4% just before 1 p.m. ET, while the S&P 500 and Nasdaq Composite climbed 1.9% and 3%, respectively. The agreement, made public late Sunday, extends the U.S.-Iran ceasefire for 60 days and aims to pave the way for negotiations concerning Tehran’s nuclear program, with a signing planned for Friday in Geneva.

In other market movements, major tech stocks contributed to the upward trend, with Alphabet, Nvidia, and Micron Technology collectively boosting their market capitalization by over $300 billion. Meanwhile, oil prices dropped sharply; West Texas Intermediate crude fell to approximately $80 per barrel as the reopening of the Strait of Hormuz is anticipated with the upcoming signing in Geneva.