U.S. stock futures are surging Monday morning as investors cheer a preliminary pact struck between the U.S. and Iran to end the more than three-month conflict and reopen the strategic Strait of Hormuz. At 04:30 a.m. ET, Dow E-minis were up 519 points, or 1.01%, S&P 500 E-minis were up 94.5 points, or 1.27%, and Nasdaq 100 E-minis were up 622 points, or 2.1%. The framework for a deal, however, did not address sticking issues such as Iran's nuclear program and the conflict between Lebanon and Israel, with the agreement expected to be officially signed on Friday in Switzerland. Brent crude prices tumbled over 4% to their lowest since March following the news, as investors believe a peace deal could lead to the reopening of the Strait of Hormuz, one of the world's most important energy shipping routes. Crude prices are likely to put the focus on energy price-sensitive airlines and cruise stocks such as Delta and Norwegian Cruise, along with energy companies such as Occidental and Exxon. Max Kettner, chief multi-asset strategist at HSBC Global Investment Research, noted that "If the overnight news of a deal between the U.S. and Iran proves to be credible and lasting, this should be taken as a positive, whereas setbacks will likely be taken as less of a negative by risk assets."
SpaceX is officially trading today at a valuation of around $2.2 trillion, immediately becoming one of the largest publicly listed firms in the U.S. As reported by CNBC TV18, the company priced its shares at $135 each and raised around $75 billion in what is expected to be the largest initial public offering ever. SpaceX shares rose another 6% on Monday after soaring 19% during their stock market debut on Friday, with the company officially going public on June 12 under the Nasdaq ticker "SPCX" in what is being called the largest IPO ever. The Elon Musk-led company, which plans to develop space-based artificial intelligence data centres, is being closely watched not only because of its size, but also because it could provide an important test of investor appetite for high-growth technology companies. The Elon Musk-led company, which plans to develop space-based artificial intelligence data centres, is being closely watched not only because of its size, but also because it could provide an important test of investor appetite for high-growth technology companies. The SpaceX IPO was oversubscribed four times, reflecting strong institutional and retail investor demand for the company's shares. SpaceX shares were trading 5.6% higher in pre-market trade at $169, with the strong debut reportedly pushing Elon Musk's net worth beyond the $1 trillion mark, making him the first person to achieve the milestone. "A successful SpaceX IPO is generally a positive signal for broader investor interest in innovation and technology," said Evan Schlossman, principal at SuRo Capital to CNBC. "It reflects the demand and enthusiasm investors have for companies in these sectors."
Wall Street extended gains on Monday as investors cheered the recent Iran-US breakthrough to end the war. The S&P 500 surged 1.53% or 113.70 points to 7,545.16, tech-heavy Nasdaq Composite soared 2.36% to 26,498.61 as newly-listed SpaceX shares continued to rally; while Dow Jones Industrial Average jumped 601.17 points, or 1.17%, to 51,801.43, marking a new intraday record. On Sunday, Donald Trump had announced that the deal with Iran "now complete", later Pakistan Prime Minister Shehbaz Sharif said an official signing ceremony would take place on Friday in Switzerland. Trump also announced that he has authorised the re-opening of key maritime transit route, Strait of Hormuz after which crude oil prices declined sharply. MSCI's gauge of stocks across the globe rose 12.69 points, or 1.15%, to 1,112.24, with the European Central Bank having raised interest rates for the first time in nearly three years on Thursday to combat war-driven inflation. The European Central Bank raised interest rates for the first time in nearly three years on Thursday to nip war-driven inflation in the bud, with final inflation data from several European countries including France and Spain showing inflation accelerated in May. Britain's economy contracted by 0.1% in April - its first monthly drop since August, while the pan-European STOXX 600 index finished up 1.88%. U.S. Treasury yields rose while stocks finished higher after climbing back up from morning declines, with the yield on benchmark U.S. 10-year notes rising 1.6 basis points to 4.481% from 4.465% late on Thursday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 1.7 basis points to 4.087%. Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma, noted that "The market's been stung more times about peace in the past. Yesterday was because Trump called off the attacks. That was a tangible result. Today we're still waiting for proof of a deal."
Oil prices have fallen significantly following President Trump's claims of a breakthrough in Iran war talks. US crude oil was down about 5% and trading near $80 per barrel following Trump's announcement of the Iran agreement. Brent crude oil, the international standard, fell 3.7% on Friday to $87.33 a barrel, extending losses as reports emerged that the US and Iran had agreed a memorandum of understanding that would see the Strait of Hormuz reopen within 30 days, according to Iran's semi-official Mehr news agency. West Texas Intermediate crude oil dropped by roughly 4% to $84 per barrel. The decline followed US President Donald Trump's decision to withdraw plans for military strikes against Iran and his comments suggesting that a potential agreement with Tehran could be reached soon. Crude prices tumbled over 4% to their lowest since March following the news, as investors believe a peace deal could lead to the reopening of the Strait of Hormuz. Investors believe a peace deal could lead to the reopening of the Strait of Hormuz, one of the world's most important energy shipping routes. Since the conflict began, disruptions around the strait have pushed Brent crude prices from around $70 per barrel to significantly higher levels, contributing to inflationary pressures across global economies. Analysts caution that Brent crude prices could hover around $80 a barrel despite the resolution, as energy flows resume through the Strait and Middle Eastern countries restore damaged infrastructure. The fall in crude prices weighed on energy majors, with BP dropping 4.9% and Shell losing 3.6% in European markets. Crude oil markets certainly indicate that the Strait of Hormuz is expected to be open shortly, with energy stocks down 3.3% yesterday and up 1.6% this morning as the market digests the latest developments. Reacting to the potential reopening of the Strait of Hormuz, crude oil prices remained under pressure for the second consecutive day. Brent crude futures declined $4.33, or nearly 5%, to $83.00 a barrel, while US West Texas Intermediate (WTI) crude fell $4.54, or 5.35%, to $80.34 a barrel. Both benchmarks dropped to their lowest levels since March 10 after tumbling more than 3% in the previous session.
The bigger concern for Wall Street over the past week has been the performance of AI stocks, which have swung sharply after previously surging to record highs. According to The Times of India, Several AI-linked stocks declined on Friday, with Micron Technology falling 2% and Broadcom slipping 1%, which was one of the heavier weights on the S&P 500. Investors have increasingly questioned whether valuations had risen too far, too quickly amid enthusiasm surrounding artificial intelligence. Some of the pressure on AI stocks may be coming from investors pulling their money out in hopes of moving it to SpaceX and other big AI-related initial public offerings. The SpaceX IPO represents the first of three giant AI-related companies expected to begin trading on US markets, offering insight into whether investors remain willing to back AI stocks after sharp swings and growing doubts over the past week. A steep slide in shares of Oracle, which was fueled by a spending forecast from the cloud computing group that far surpassed estimates, possibly exacerbating worries over how the tech industry plans to fund a massive build-out of artificial intelligence data centers. The AI sector faces additional pressure from a hotter than anticipated reading of overall U.S. producer price growth in May, which has contributed to inflationary concerns. However, Tomás García-Purriños at Santander Asset Management noted that "there appears to be continued investor appetite for technology-related growth stories, particularly those with exposure to AI." He added that "the pipeline of expected IPOs in 2026 suggests that investor interest in technology, digital infrastructure and AI-related themes remains healthy, extending well beyond a handful of high-profile names." AI infrastructure companies wavered following the SpaceX IPO, raising $75 billion for fresh expenditure on data centers and compute capacity. Chips producers gained with AMD, Qualcomm, and Sandisk up 5%, while hyperscalers were lower, with Microsoft, Amazon, Apple, and Oracle edging down. Shares of other space stocks, which have soared in the lead-up to the debut, eased on Friday, including Rocket Lab, Intuitive Machines and Planet Labs. Chip stocks also moved higher ahead of the opening bell, with Micron surging 8.2%, while Nvidia was up 2.3%. Intel added 3.1%, and Marvell Technology advanced 5.4%. Tesla shares gained 1.5% to $412.42.
The S&P 500 (SPX) index trades near 7,545.16 after SpaceX completed the largest IPO in history, with the index correcting from its record high of 7,620.90 as the $75 billion debut absorbs liquidity. The index is correcting from its record high of 7,620.90 as the $75 billion debut absorbs liquidity, with traders now watching whether the index can defend support just below 7,000. On the weekly timeframe, the index keeps printing higher highs and higher lows, with the highs progressing from 4,818 to 6,147.43, then to the current 7,620.90. The lows climbed from 3,492 to 4,103.78, then to 4,835.04, and finally to 6,316.91. Three long-term support zones stand out on the chart: the historical area near 4,835, a second zone spanning 6,250 to 6,300, and the most important level right now rests just below 7,000. Price also moves inside an ascending channel that has guided the trend since the April 2025 bottom, with the recent rejection at 7,620.90 suggesting a retest of 7,000 and the lower channel band. The daily chart shows the correction from the record high in detail, with the index bouncing from the 55-day exponential moving average (EMA) which acted as support, though the 21-day EMA is now acting as resistance to the recovery. If selling resumes, the 0.382 Fibonacci retracement at 7,122.20 should serve as first support, with the next zone at the 0.5 Fib retracement near 6,968, in confluence with the weekly support. A retest of that area would mark an 8.6% correction from the all-time high, while the Bollinger Band Width Percentile (BBWP) already prints near extreme red readings, suggesting volatility may be close to peaking. U.S. equity funds saw their first weekly outflow in three weeks, and earlier this week the technology index confirmed a correction. In the middle of the day, a US official stated that "it's probably more like 80, 85% now, but it's not 100%" that an agreement with Iran will be reached. Analysts believe some of the weakness in U.S. stocks and bitcoin's fall last week could be due to traders trimming holdings ahead of SpaceX's debut. Investors were also looking ahead to next week's Federal Reserve policy meeting, which will be the first under the leadership of Kevin Warsh. "Attention now turns to upcoming central bank meetings, particularly the Federal Reserve, as investors assess whether easing energy prices can help cool inflation and improve the outlook for interest rates in the months ahead," brokerage firm Vested Finance said.
