The US stock market rallied on Monday, with the Dow Jones Industrial Average gaining 516 points, or 1%, after investors responded favourably to President Donald Trump’s announcement that a deal had been reached to bring an end to the conflict between the United States and Iran.
The benchmark index also touched a record intraday high during the session, reflecting growing optimism among market participants following the peace development.
Broad market gains were also seen, with the S&P 500 advancing 1.5% and the Nasdaq climbing 2.3%.
Investor sentiment was buoyed by expectations that easing tensions in the Middle East could lower the risk of disruptions to global oil supplies and reduce uncertainty for the world economy.
SpaceX stock jumped more than 6% on Monday, following a 19% surge during its public market debut on Friday.
US Vice President JD Vance said he expects the Strait of Hormuz to remain open without tolls for the long term, after Trump announced the reopening of the oil shipping route.
US crude oil prices dropped about 5%, falling to around $80 per barrel, and airline and cruise stocks rose as fuel prices fell.
Investors expected lower oil prices to reduce fuel costs for airlines and cruise companies, improving their profit outlook.
