Stocks rose on Monday to kick off the holiday-shortened trading week as SpaceX extended its rally and after President Donald Trump announced that an agreement had been reached to end the war between the U.S. and Iran.
The Dow Jones Industrial Average added 468.77 points, or 0.92%, for a record close of 51,671.03. The 30-stock index also hit a new all-time intraday high during the session. The S&P 500 climbed 1.65% to 7,554.29, while the Nasdaq Composite popped 3.07% to end at 26,683.94. The tech-heavy index notched its best day since March 31.
SpaceX shares popped nearly 20% after soaring 19% in their public market debut on Friday.
“It seems to be much more orderly than what I expected, and that’s not a bad thing,” said Brian Mulberry, chief market strategist at Zacks Investment Management. “This is not some type of a meme stock right out of the gate, that it actually is people adding it and holding it in their portfolio, not trying to turn it over.”
Trump said late Sunday on social media that a deal with Iran was “now complete.” The memorandum of understanding will be formally signed on Friday in Switzerland, according to Pakistan Prime Minister Shehbaz Sharif. It has already been signed electronically, per a senior administration official.
“It seems real this time as both rates and oil have broken through key levels,” Mulberry said. The development “should alleviate pressure on the FOMC commentary, and that is good news long term for this market.”
The announcement came after an exchange of fire between Israel and the Tehran-backed Hezbollah in Lebanon raised uncertainty over whether the agreement would get across the finish line on Sunday.
Trump also said he authorized the reopening of the key Strait of Hormuz passageway, sending oil prices tumbling. On Monday, Vice President JD Vance told CNBC that he expects the strait is “going to be opened in a toll-free way for the long term.” U.S. crude closed down around 4.9% at $80.75 per barrel.
While Mulberry noted that it will likely take a “little bit longer” for prices to come down on refined products such as jet fuel, the price of crude falling to $80 is “a strong signal, given that this is an FOMC week, that we don’t need to raise rates [and] that the price pressure should alleviate relatively quickly.”