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The Dow Jones Industrial Average hit a new record high at the close of trading on Monday, adding nearly 470 points, or 0.9%, to close at its highest level ever, while also reaching a new intraday peak. The strong gains were fueled by market optimism following US President Donald Trump’s announcement of an agreement between the United States and Iran to end the four-month-long conflict, which boosted investor appetite for riskier assets.
Meanwhile, the Standard & Poor’s 500 index rose by 1.7%, while the Nasdaq index jumped by about 3%, in one of its strongest upward sessions in recent times.
Pakistani Prime Minister Shehbaz Sharif said that military operations had stopped on all fronts, noting that the agreement is scheduled to be officially signed during a ceremony to be held next Friday in Switzerland, which kept the markets optimistic, albeit with some caution.
The decline in oil prices is supporting risk appetite.
In a related development, Trump announced that the Strait of Hormuz would reopen on Friday, causing oil prices to fall by about 5%. Investors view lower oil prices as a positive factor for markets, as it helps alleviate inflationary pressures and reduces concerns about interest rate hikes. The reduced likelihood of monetary tightening also supports equity markets by lowering borrowing costs and improving the valuations of listed companies.
The upward trend extended to multiple sectors, and was not limited to major technology stocks only, as financial, industrial and cyclical stocks also participated in the gains, giving the current rise a broader support base compared to previous waves that were mainly driven by artificial intelligence stocks.
SpaceX shares continue to soar
Meanwhile, SpaceX shares continued to attract attention during their first full trading session as a publicly traded company, surging an additional 20% and adding to the 20% gains they recorded on their debut trading day last Friday. This surge pushed the company’s market capitalization above $2.5 trillion, while billionaire Elon Musk’s net worth jumped by approximately $164 billion in a single session, approaching $1.3 trillion.
Pre-market trading showed the stock rising by an additional 4%, indicating continued strong buying momentum.
Tuesday’s trading session was relatively calm, with markets appearing quieter after the strong gains of the previous session. US stock futures traded near their closing levels with little change. Globally, Japan’s Nikkei index hit a new record high during trading, while South Korea’s Kospi rose by 2%. The European Stoxx 600 index opened slightly higher, supported by gains in banking and industrial stocks.
