Dow hits record high as Iran deal hopes, SpaceX rally lift stocks

• The Dow gained 0.96%, S&P 500 rose 1.67%, and Nasdaq surged 3.07% (strongest gain since March 31) as geopolitical tensions eased
• SpaceX extended gains after Friday's blockbuster Nasdaq debut with a valuation exceeding $2 trillion, one of the largest US publicly traded companies
• Lower oil prices benefited tech stocks and airlines, while markets await the Federal Reserve's policy meeting under new Chair Kevin Warsh, with 42% probability of a rate hike by year-end

Market Summary: Dow Reaches Record High on Iran Deal and SpaceX Momentum

Key Market Movements:

U.S. equities posted strong gains on Monday, marking a third consecutive session of advances. The Dow Jones Industrial Average surged 490.38 points (+0.96%) to a record close of 51,684.88. The S&P 500 rose 1.67% to 7,555.26, while the Nasdaq Composite jumped 3.07% to 26,686.64—its strongest daily gain since March 31.

Iran Deal Impact:

President Trump announced completion of an agreement with Iran expected to be formally signed in Switzerland on Friday. The framework aims to end U.S.-Iran conflict and reopen the Strait of Hormuz, though it doesn't address Iran's nuclear program or the Israel-Hezbollah conflict. U.S. crude futures dropped 4.9% to $80.75 per barrel, the lowest since March, easing inflation concerns and reducing expectations for higher interest rates.

SpaceX Rally Continues:

SpaceX extended gains following its blockbuster Nasdaq IPO, rising 19% with a valuation exceeding $2 trillion. The successful debut has boosted optimism for future IPOs from major AI companies.

Sector Performance:

Technology led gains, with the Philadelphia Semiconductor Index advancing sharply on strength in Nvidia and Micron Technology. Airlines and cruise operators (United Airlines, Norwegian Cruise Line, Carnival) benefited from lower fuel costs.

Federal Reserve Watch:

Markets await the Fed's upcoming policy meeting under new Chair Kevin Warsh, with rates expected to remain unchanged. CME's FedWatch tool shows a 42% probability of a 25-basis-point rate increase by year-end. The CBOE Volatility Index declined for a third session, signaling improved market sentiment.