The Nasdaq composite jumped 2.3% on Monday as the U.S. and Iran announced a tentative peace framework, with markets rallying on relief from geopolitical tension and declining oil prices that typically weigh on tech stocks.
The breakthrough agreement, confirmed by both governments, would end a war that had dragged on for more than three months and threaten global shipping. Under the deal, Iran agreed to immediately and safely reopen the Strait of Hormuz, the vital waterway through which roughly 25% of the world’s seaborne oil trade flows. According to Iranian state media, the shipping lane would reopen within 30 days of a final deal being signed.
Oil prices fell sharply on the news. Brent crude dropped 4.7%, easing pressure on energy-intensive sectors and lifting the tech-heavy Nasdaq, which benefits from lower energy costs and reduced inflation expectations. The decline in crude prices helped stocks across the board, with the Dow Jones Industrial Average climbing 620 points and the S&P 500 also gaining ground.
The Nasdaq’s surge was amplified by momentum from SpaceX’s historic initial public offering three days earlier. On June 12, the Elon Musk-led space company completed the largest IPO ever, raising $75 billion at $135 per share. Shares jumped 19% on their debut, closing at $160.95 and pushing SpaceX’s market capitalization to approximately $2.1 trillion. The blockbuster listing energized investor appetite for growth and technology stocks, creating tailwinds that carried into the week.
The combination of geopolitical de-escalation and tech sector enthusiasm underscored how interconnected global markets have become. When tensions ease and oil prices fall, technology companies—which rely on affordable energy and benefit from lower financing costs—typically outperform. The Nasdaq’s two-day rally, driven by both the Iran peace deal and SpaceX momentum, reflected investor confidence that inflation pressures would ease and that the space and satellite industries could attract sustained capital flows.
Sources
- The Washington Post — Nasdaq composite gain of 2.3%, Dow rise of 620 points, Brent crude decline of 4.7%
- Al Jazeera — US and Iran announce framework to end war and reopen Strait of Hormuz
- CNBC — SpaceX IPO raises $75 billion, shares jump 19% to $160.95, market cap reaches $2.1 trillion
- Reuters — SpaceX IPO priced at $135 per share, record debut details
- Investing.com — US-Iran war lasted more than three months
- Facebook/Bloomberg — Iran agreed to immediately and safely reopen Strait of Hormuz
- Iranian state media — Strait of Hormuz to reopen within 30 days of final deal signing
