US equity benchmarks reached historic territory Monday as the preliminary US-Iran memorandum of understanding to reopen the Strait of Hormuz sent crude prices sharply lower, with the Dow Jones Industrial Average closing at a record 51,684.88, the S&P 500 rising 1.67% to 7,555.26, and the Nasdaq Composite jumping 3.07% to 26,683.64.

  • The Dow Jones Industrial Average closed at an all-time high of 51,684.88 on Monday, rising 490 points or 0.96%.
  • The S&P 500 gained 1.67% to 7,555.26, advancing for a third consecutive session.
  • The Nasdaq Composite rose 3.07% to 26,683.64, its strongest single-day percentage gain since March 31.
  • Technology led S&P 500 sector performance with a 3.4% advance, while energy was the only sector to close in negative territory.

The US and Iran reached a preliminary agreement Monday to end their conflict and reopen the Strait of Hormuz, triggering a simultaneous decline in crude prices and rally in equity markets as geopolitical risk premiums embedded since the conflict began in late February began to unwind.

The advance was notably broad-based. More than 80% of Nasdaq-listed stocks closed higher, with participation extending well beyond the technology mega-caps that have dominated equity returns during the conflict period. The breadth signal suggests a macro-level catalyst rather than a narrow momentum trade.

US markets will be closed Friday for the Juneteenth National Independence Day holiday. The formal deal signing is expected the same day in Geneva, meaning the market's first opportunity to react to confirmed implementation will be Monday of the following week.