4:20pm: Tech lead risk-on surge
Wall Street closed sharply higher on Monday, with the Dow Jones Industrial Average finishing up 469 points, or 0.9%, at 51,671 and touching a fresh record high as investors welcomed signs of easing tensions in the Middle East. The S&P 500 jumped 1.7% to 7,554, while the tech-heavy Nasdaq Composite led the rally, surging 3.1% to 26,684.
Markets were buoyed by a preliminary agreement between the United States and Iran that includes reopening the Strait of Hormuz, easing concerns about global energy supplies and helping drive oil prices sharply lower. WTI crude fell nearly 5% to below $80 a barrel, its lowest level in two months, as traders unwound geopolitical risk premiums.
The improved risk backdrop added to momentum from the blockbuster SpaceX (NASDAQ:SPCX) IPO and sparked a broad rally in growth stocks. AI leaders continued to lead the charge, with NVIDIA climbing 3.5% and Microsoft gaining 2.6% as investors remained focused on the sector's strong earnings outlook.
While stocks celebrated the prospect of reduced geopolitical uncertainty and lower energy costs, gold prices also advanced toward $4,337 an ounce as investors balanced improving inflation expectations against the prospect of upcoming central bank decisions.
By the closing bell, the message from markets was clear: easing tensions abroad and continued enthusiasm for technology helped fuel another powerful rally, sending major U.S. indexes to new highs.
3:45pm: Proactive news headlines
- Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF, FRA:9SU0) reported encouraging early results from its summer drill program at the Davidson River Project, with the first hole intersecting anomalous radioactivity and strongly graphitic basement structures associated with uranium-bearing hydrothermal alteration.
- First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) completed a $15.4 million financing, providing fresh capital to advance its strategy of building a North American lithium iron phosphate (LFP) battery supply chain.
- Medicus Pharma (NASDAQ:MDCX) submitted a Rare Pediatric Disease Designation request to the FDA for SkinJect, its investigational microneedle patch designed to treat basal cell carcinoma in patients with Gorlin Syndrome.
2:50pm: Market movers
- SpaceX (NASDAQ:SPCX) shares climbed 17% to $187.70 on Monday, extending gains from their record-breaking IPO debut and lifting the company's market value above US$2.2 trillion, making it one of the six largest companies globally.
- Tower Semiconductor surged nearly 9% after securing a multi-year agreement with IQE to supply indium phosphide epiwafers for advanced silicon photonics products aimed at the rapidly expanding AI data center connectivity market.
- Payoneer Global gained 4.1% after agreeing to be acquired by Nuvei in an all-cash transaction valued at approximately $2.75 billion, with shareholders set to receive $7.40 per share.
- Fox Corp (NASDAQ:FOXA) agreed to acquire Roku in a cash-and-stock deal valued at about $22 billion, combining Fox's media assets with Roku's streaming platform while leaving Fox shareholders with a 73% stake in the merged company.
- Seeing Machines rose 8% after announcing design wins with two Japanese automakers, with broker Peel Hunt saying the contracts validate the company's Tier 2 supplier strategy and could ultimately generate more value than their stated $11 million lifetime revenue potential.
2:00pm: Peace deal drives sentiment
“The US-Iran deal was going to be the only game in town for markets today after the US president announced it last night," said IG's Chris Beauchamp.
"Markets have been dancing to Trump’s tune ever since he was re-elected, and especially since his tariff announcements of last year. This has only intensified with the Iran war, but once again it looks like he may succeed in skirting a global meltdown, but only just.
"The news has been the signal for rampant buying, unleashing billions in equity purchases that have been waiting for this moment.”
12:20pm: Fox snaps up Roku
Fox Corp (NASDAQ:FOXA) (Fox Corp (NASDAQ:FOXA)) has agreed to acquire streaming platform Roku Inc (NASDAQ:ROKU) (Roku Inc (NASDAQ:ROKU)) in a cash-and-stock deal valuing the company at approximately $22 billion in enterprise value, the companies announced Monday.
Under the terms of the agreement, Fox will pay $160 per share, comprising $96 in cash and 0.9693 Fox Class A shares. Fox shareholders will retain approximately 73% ownership of the combined company, with Roku shareholders holding the remaining 27%.
Fox Class A shares fell approximately 15.5% in Monday trading, while Roku shares slipped around 0.8%.
11:05am: Week ahead
Wall Street heads into a holiday-shortened week facing a pivotal test as investors weigh a new era at the Federal Reserve, fresh readings on consumer spending and inflation, and geopolitical developments that could shape energy markets and risk appetite.
US markets will be closed Friday in observance of the Juneteenth holiday, compressing a week packed with market-moving events into four trading days.
The spotlight will fall squarely on Wednesday's Federal Reserve policy meeting, the first under new Fed Chair Kevin Warsh. While policymakers are widely expected to leave interest rates unchanged, investors will closely scrutinize Warsh's inaugural press conference for clues on the future direction of monetary policy.
“Warsh’s first press conference is a market-moving event,” said Kathleen Brooks, research director at XTB. “He is likely to say that economic conditions do not justify a hike at this time, however, he could reiterate his long-held view that tech investment, especially in AI capabilities, will boost productivity in the future without stimulating inflation.”
10:00am: Ceasefire sparks global relief
Wall Street kicked off the week with a powerful rally on Monday after the United States and Iran announced a ceasefire agreement, easing fears of a broader conflict in the Middle East and boosting investor appetite for risk.
The Dow Jones Industrial Average surged more than 600 points to a fresh intraday record high, while the Nasdaq Composite jumped over 2% and the S&P 500 climbed sharply as traders welcomed signs of improving geopolitical stability.
Adding to the upbeat mood, oil prices tumbled as concerns over potential supply disruptions faded, with Brent crude falling 4.7% to below $83 a barrel. Cryptocurrency markets also rebounded, with Bitcoin climbing to around $66,800, while the US dollar weakened as investors scaled back expectations for aggressive Federal Reserve rate hikes. Gold, meanwhile, rose more than 2% to above $4,300 an ounce as markets repositioned following the dramatic shift in geopolitical tensions.
"Last week it seemed Kevin Warsh was set for a rocky first meeting as Fed chairman, but the slump in oil prices and an Iran deal changes the game for the new head of the world's most important central bank,” said IG’s Chris Beauchamp. “He can now go into the meeting arguing that the shock of higher energy costs will continue to fade, bolstering his argument for rate cuts."
Investors are also digesting a fresh wave of corporate and economic news. Fox said it will acquire Roku for $160 per share, while AI company Anthropic reportedly sent staff to Washington after facing export restrictions on its most advanced artificial intelligence models. On the economic calendar, traders are awaiting the Empire State manufacturing survey, industrial production figures and home-builder confidence data for further clues on the health of the US economy.
Ahead of the bell
US stock futures surged on Monday after Washington and Tehran announced a ceasefire agreement that should reopen the Strait of Hormuz, sending oil prices sharply lower and lifting risk appetite at the start of a holiday-shortened week.
Nasdaq 100 futures led the advance with a gain of 2%, while S&P 500 futures rose 1.3% and Dow Jones futures climbed 1%, building on solid gains from Friday.
President Trump described the ceasefire as "complete" in a Truth Social post late Sunday, with formal signing expected in Switzerland on Friday and peace talks to begin within 60 days.
Brent crude fell roughly 5% to just above $83 a barrel as fears over supply disruptions eased, though tanker operators remain cautious given the lack of detail in the provisional agreement.
SpaceX (NASDAQ:SPCX) added to the positive mood after shares extended Friday's near-20% debut surge with further gains in premarket trading, pushing the Elon Musk-led company's market value above $2 trillion.
The Federal Reserve's rate decision on Wednesday is the week's main event, with traders pricing in a near-certain hold.