Dow closes at record high as U.S.-Iran deal lifts stocks

Key Points:

• Wall Street surged as the Nasdaq rose 3% and the Dow hit a record close following a preliminary U.S.-Iran agreement to end Middle East conflict and reopen the Strait of Hormuz, easing inflation concerns with a sharp drop in crude oil prices.
• U.S. crude futures fell nearly 5% to their lowest since March, benefiting energy-sensitive sectors like airlines and cruises, while energy stocks declined; technology stocks led gains due to reduced inflation fears.
• The Dow increased by 468.77 points (0.92%), the S&P 500 gained 1.65%, and the Nasdaq jumped 3.07%, marking its strongest one-day percentage gain since March 31, extending a three-day rally after recent market volatility.
• Investors hope lower oil prices will give the Federal Reserve room to maintain current interest rates amid inflation concerns, with the Fed's policy update scheduled for Wednesday and a 42% chance of a rate hike later this year.
• Notable stock movements included SpaceX soaring 19.6% after its IPO, semiconductor stocks like Nvidia and Micron rallying strongly, while Fox shares dropped 16.8% following its announcement to acquire Roku in a $22 billion deal.