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15.06.202616:46:49UTC+00US Stocks Extend Rise on US-Iran Deal

US equities extended their gains on Monday after Washington and Tehran announced an agreement to end hostilities and restore energy exports from the Middle East. The Dow Jones Industrial Average climbed 700 points to a new record high, while the S&P 500 advanced 2% and the Nasdaq Composite added 3%.

The deal, scheduled to be signed on Friday, reportedly includes provisions for Iran to clear mines from the Strait of Hormuz and for the removal of naval blockades on all exports from the Persian Gulf. The prospect of normalized energy flows pushed energy prices and bond yields lower, improving the macroeconomic backdrop and bolstering risk appetite, particularly in large-cap technology stocks.

Oracle and Meta each rose 4%, while Nvidia and Amazon gained 3%. SpaceX climbed another 10% following its 20% jump on its IPO debut in the previous session, after CEO Elon Musk suggested the company could generate $1 trillion in revenue by 2031. Semiconductor makers also continued to rally, supported by stepped-up fundraising by AI developers and the resulting surge in orders for AI infrastructure providers.

By contrast, Fox tumbled 15% after agreeing to acquire Roku in a $22 billion deal.

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