US markets powered higher on Monday as investors embraced news of a ceasefire agreement between the United States and Iran, a development that eased concerns over global energy supplies and fuelled a broad-based rally led by technology stocks.
The Nasdaq Composite surged more than 3%, comfortably outpacing its peers as appetite for growth shares returned, while the S&P 500 climbed 1.6%. The Dow Jones Industrial Average added 0.9%, setting another record high after extending gains from the previous session.
Market sentiment improved after President Donald Trump announced that Washington and Tehran had reached what he described as a “complete” ceasefire agreement. Negotiations to finalise a broader peace settlement are expected to begin within the next 60 days, while representatives from both countries are scheduled to meet in Switzerland on Friday to formally sign an interim accord.
The prospect of reduced tensions around the Strait of Hormuz, one of the world’s most important oil shipping routes, triggered a sharp sell-off in crude markets.
Brent crude dropped 4.7% to around $83 per barrel, while West Texas Intermediate fell more than 5%, though it remained above the $80 mark. The decline reflected growing confidence that major supply disruptions may be avoided.
Shares in Fox plunged 15% after the media company unveiled plans to acquire streaming platform Roku in a deal valued at $22 billion. Roku slipped 1%, reversing earlier gains and giving back part of the strong rally recorded on Friday.
SpaceX continued to dominate investor discussion following its blockbuster stock market debut at the end of last week. Shares in Elon Musk’s space company jumped almost 20% again on Monday, adding to an already remarkable start to life as a publicly traded business.
Attention is now turning towards the Federal Reserve’s latest policy decision due later this week. Recent inflation data has reignited debate over whether interest rates may need to rise again before the end of the year, although traders currently see little chance of any immediate action. According to CME FedWatch data, markets are assigning better than a 98% probability that policymakers leave rates unchanged on Wednesday.
Robinhood was another stock in focus as analysts pointed to the FIFA World Cup as a potential catalyst for growth. Bernstein expects prediction markets to become the company’s largest incremental revenue driver during 2026, estimating revenue from the segment could jump 286% to roughly $586 million. The broker believes growing interest in sports-related forecasting, political events and institutional participation could further boost activity as the tournament progresses.
Bank of America described the World Cup as the largest sporting event ever staged, forecasting engagement from more than six billion people worldwide and attendance of around 6.5 million fans, almost double previous records.
