Monday was a good day for just about everything. Dow Jones hit a new record. S&P 500 and Nasdaq both jumped hard. SpaceX kept going. Tuesday morning is calmer but the mood is still constructive.
Everything Went Up Monday
Dow Jones gained 470 points on Monday. That is 0.9% and a fresh record close. But the Dow was actually the quieter one. S&P 500 jumped 1.7%. Nasdaq soared 3%. Broad rally across nearly every corner of the market.
The trigger was Trump announcing that the US and Iran had reached an agreement to end their four month conflict. Pakistani Prime Minister Shehbaz Sharif added that military operations had stopped on all fronts. Official signing ceremony is still set for Friday in Switzerland. Until that actually happens traders are staying positive but not fully relaxed.
Rally was not just concentrated in tech this time either. Financials moved up. Industrials joined in. Cyclicals also participated. That kind of broad participation gives the move more credibility than a rally driven purely by a handful of AI names.
Oil Dropped and That Helped Everything
Trump said the Strait of Hormuz would reopen on Friday. Oil prices fell nearly 5% on that news. Cheaper oil reduces costs across the economy. Transport, manufacturing, household energy bills all feel it.
Lower oil means less inflation pressure. Less inflation pressure means the Federal Reserve has less reason to raise rates. Less rate hike risk means borrowing stays cheaper and future corporate earnings look better when you run the numbers. That logic flows pretty directly into higher stock prices.
It is the same chain that moved markets last week when peace talk first started. Monday was the market reacting to it becoming more real.
SpaceX Is Still Going
SpaceX had its IPO Friday. Stock jumped 20% on debut day. Then Monday happened and it went up another 20% on its first full trading day as a public company. Market value pushed above $2.5 trillion.
Elon Musk’s personal wealth increased by roughly $164 billion in a single session. His estimated net worth is now approaching $1.3 trillion. Numbers that are genuinely hard to process in normal terms.
Tuesday pre-market was pointing to another 4% gain for SpaceX. Traders have not run out of enthusiasm for it yet. Whether that continues or starts to slow down is one of the things worth watching as the week progresses.
Tuesday Is Quieter But Still Positive
After Monday’s big moves futures pulled back to roughly flat Tuesday morning. That is normal. Markets needed a breath after a session that big.
Overseas picture stayed positive though. Japan’s Nikkei touched a record intraday high Tuesday. South Korea Kospi climbed 2%. Europe’s Stoxx 600 opened modestly higher with banks and industrial stocks leading.
Global mood is clearly better than it was a week ago. Peace deal optimism is real even if the signing has not happened yet. SpaceX is adding its own energy on top of that. And rate fears have cooled enough that investors feel comfortable buying broadly rather than hiding in defensive names.
Rest of the week depends on two things mostly. Fed meeting outcome Tuesday and Wednesday. And whether Friday’s signing ceremony in Switzerland actually happens without any last minute problems. Both of those will do more to set the tone for the next few weeks than anything else on the calendar right now.