Dow jumps 621 pts as Iran framework, SpaceX lift stocks

The Dow Jones Industrial Average climbed 621 points on Monday, while the S&P 500 rose 1.5% and the Nasdaq Composite gained 2.37% after reports that the United States and Iran had reached a preliminary framework to end their conflict and reopen the Strait of Hormuz.

Reports indicated the agreement could be formally signed in Switzerland on Friday. President Donald Trump described the agreement as “now complete,” and Pakistan Prime Minister Shehbaz Sharif indicated a memorandum of understanding would be signed later this week.

U.S. crude fell about 5% to roughly $80 a barrel, driving energy benchmarks to their weakest levels since March. Energy producers moved lower, with Exxon Mobil and Chevron each falling more than 4% as markets adjusted to the prospect of weaker oil prices.

Lower fuel costs supported travel and leisure stocks. United Airlines rose about 7%, Delta Air Lines gained roughly 4.3% and American Airlines added about 3.8%. Cruise operators including Norwegian Cruise Line and Carnival advanced near 5%.

Technology and artificial intelligence-linked names led gains on the Nasdaq. Micron Technology surged 7.8% after brokerages raised price targets, Nvidia added 2.5%, Intel rose 4% and Marvell Technology advanced about 4.1%.

SpaceX remained in focus after its widely watched initial public offering. Shares climbed another 5.2% on Monday after a more than 19% gain on their Nasdaq debut Friday, and the company closed its first trading day with a market value above $2 trillion. Analysts noted the smooth offering could support other planned listings.

The rally unfolded ahead of a Federal Reserve policy meeting this week, the first under Chair Kevin Warsh. Markets largely expect the central bank to hold interest rates steady, and the CBOE Volatility Index fell to a one-week low.

Trading volumes and sector breadth pointed to broad participation, with cyclical industries and chipmakers among the leading advancers. Market watchers said developments remain subject to confirmation until any formal agreement is signed and oil markets fully reflect changes in supply.