NEW YORK — Wall Street kicked off a holiday-shortened week with a broad rally on Monday after President Donald Trump announced late Sunday on Truth Social that a deal to end the U.S.-Iran war was “complete,” clearing the way to reopen the Strait of Hormuz and sending oil prices sharply lower.
“Ships of the World, start your engines. Let the oil flow!” Trump wrote in his post.
Pakistan Prime Minister Shehbaz Sharif said a formal signing ceremony is scheduled for Friday in Switzerland, adding another sign that markets believe the conflict is winding down.
The agreement removed the single biggest weight on stocks over the past two months. Since the war began in late February, fears that a closure of the Strait of Hormuz would choke off global oil supplies helped push crude above $90 per barrel and kept inflation concerns front and center. With that threat easing, investors returned to many of the stocks they had abandoned during the conflict.
The Dow Jones Industrial Average gained 1.20%, or approximately 614 points, ending near 51,817.
The S&P 500 rose 1.49%, gaining approximately 111 points to close near 7,542, up from Friday’s finish of 7,431.46.
The Nasdaq Composite led the major indexes higher, climbing 2.38%, or roughly 616 points, to close near 26,505.
The Russell 2000 added 0.79%, finishing around 2,967.
Despite the impressive headline numbers, the rally was somewhat concentrated. By midafternoon, only slightly more than half of listed stocks were advancing, with much of the gains driven by technology shares.
Market Movers
Away from geopolitics, the day’s biggest corporate story was a major media transaction.
Fox Corporation announced it would acquire streaming-device maker Roku for $160 per share in a cash-and-stock transaction valued at approximately $22 billion.
The announcement sent Roku soaring about 20% to approximately $143.66, making it one of the strongest performers of the day. Despite the jump, Roku still traded below the agreed acquisition price.
Fox investors reacted far differently.
Fox Class A shares plunged 17.2%, while Fox Class B shares fell 15.7%, making the company the worst performer in the S&P 500 as investors questioned the acquisition cost.
The announcement prompted a series of analyst downgrades.
Jefferies analyst James Heaney downgraded Roku to Hold from Buy while raising his price target to $160 to reflect the acquisition price.
Baird also downgraded Roku to Neutral with a $160 target, while William Blair removed the company from its conviction list, citing surprise at the timing given Roku’s recent growth trajectory.
Among technology stocks, Intel gained 6.51% to close at approximately $124.57.
Nvidia edged up 0.16% to roughly $205.19.
Super Micro Computer declined 4.72% to $30.46.
SpaceX Draws More Investor Attention
Fresh off the largest IPO in history, SpaceX continued attracting investor interest after Australian mining billionaire Gina Rinehart disclosed that her company, Hancock Prospecting, had accumulated a stake worth more than $1 billion.
Shares of SpaceX (SPCX), which surged approximately 19% during Friday’s market debut, gained another 5% Monday.
Analysts remain divided.
CFRA Research analyst Keith Snyder maintained a Sell rating with a $115 price target, significantly below current levels.
Meanwhile, Oppenheimer continues to rate the stock Outperform with a $190 target.
Oil Falls, Volatility Drops
The biggest move of the day occurred in commodities.
West Texas Intermediate crude oil fell roughly 5% to around $81 per barrel.
Brent crude, the global benchmark, dropped to approximately $84 per barrel.
Traders are betting that reopening the Strait of Hormuz will eventually restore normal shipping patterns, although analysts caution that clearing shipping backlogs may take months.
Vice President JD Vance told CNBC on Monday that the administration expects the waterway to remain open on a toll-free basis over the long term.
Precious metals moved higher.
Gold gained approximately 1.6% to around $4,309 per ounce.
Silver surged more than 4%.
Meanwhile, the Cboe Volatility Index (VIX) — often referred to as Wall Street’s fear gauge — dropped approximately 9% to 17.68, reflecting reduced geopolitical anxiety.
Bitcoin rose roughly 1.5% to near $65,400.
Global Markets Rally
The optimism extended well beyond the United States.
Japan’s Nikkei 225 surged 5% to a record closing high of 69,317.50.
South Korea’s Kospi gained 5.2%.
European markets also advanced as investors welcomed the prospect of lower energy costs and reduced geopolitical risk.
Looking Ahead
Markets will be closed Friday for the Juneteenth holiday, creating a shortened trading week.
Investors now turn their attention to the Federal Reserve, where newly installed Chair Kevin Warsh will preside over his first policy meeting.
According to the CME FedWatch Tool, traders are assigning better than a 98% probability that policymakers leave interest rates unchanged.
With oil prices falling, volatility declining and one of the market’s largest geopolitical risks apparently easing, investors will be watching closely to see whether Monday’s rally marks the beginning of a broader advance or simply a relief bounce after months of uncertainty.
JBizNews Desk
© JBizNews.com All Rights Reserved. Reproduction or distribution without written permission is prohibited.
