U.S. stocks rallied sharply on Monday after the United States and Iran signed a peace agreement that ends their war and reopens the Strait of Hormuz, sending crude oil tumbling roughly 5% to two-month lows and Treasury yields to one-month lows.
The collapse in energy prices eased inflation fears and powered a sharp rally in technology stocks.
“Ships are starting to move, many loaded up with oil, out of the Strait of Hormuz. They are going along the Southern ‘Highway,’ which is totally safe, secure, and pristine,” President Donald Trump wrote on Truth Social Monday.
Senior U.S. officials said traffic through the strait would rise immediately, though full reopening would take time owing to mine removal, with the deal due to be signed in Switzerland on June 19.
West Texas Intermediate crude slid 5.3% to around $80.37 a barrel, while Brent dropped 5.0% to roughly $82.93, both touching two-month lows as the prospect of restored Persian Gulf exports unwound the conflict’s risk premium.
The retreat in oil rippled through rates markets. The 10-year Treasury yield eased 3 basis points to about 4.46%, its lowest in a month, while the 2-year fell 4 basis points to 4.05% and the 30-year held near 4.97%.
Across U.S. equity markets by midday Monday, gains were broad-based.
The S&P 500 climbed 1.8% to 7,567, while the Dow Jones Industrial Average advanced 684 points, or 1.3%, to 51,886. The Nasdaq 100 outpaced the tape with a 2.9% surge to 30,485. Within Magnificent Seven stocks, Meta Platforms Inc. (NASDAQ:META) jumped 5.8%, while Nvidia Corp. (NASDAQ:NVDA) rose 3.4%, Amazon.com Inc. (NASDAQ:AMZN) gained 3.2% and Alphabet Inc. (NASDAQ:GOOGL) added 3.0%. The small-cap Russell 2000 climbed 1.3% to 2,983.
Gold – tracked by the SPDR Gold Shares (NYSE:GLD) – rallied, with spot bullion up 3.2% to about $4,357 an ounce as falling yields and a softer dollar burnished the metal’s appeal.
Monday’s Performance In Major US Indices
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,567.35 | +1.8% |
| Dow Jones | 51,886.38 | +1.3% |
| Nasdaq 100 | 30,485.00 | +2.9% |
| Russell 2000 | 2,983.32 | +1.3% |
According to the Benzinga Pro platform:
- The iShares Russell 2000 ETF (NYSE:IWM) advanced 1.3%.
- The Vanguard S&P 500 ETF (NYSE:VOO) gained 1.9%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) rose 1.3%.
- The Invesco QQQ Trust (NASDAQ:QQQ) climbed 2.9%.
Chips And Gold Miners Soar As Energy Bears The Brunt
The Technology Select Sector SPDR Fund (NYSE:XLK) led all S&P 500 sectors with a 3.7% jump, while the Energy Select Sector SPDR Fund (NYSE:XLE) was the standout laggard, sliding 3.2% as crude collapsed. The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) rose 2.0% and the Industrials Select Sector SPDR Fund (NYSE:XLI) added 1.8%, while defensives lagged, with consumer staples and health care both slipping.
At the industry level, the VanEck Gold Miners ETF (NYSE:GDX) surged 7.5% alongside the bullion rally, and the U.S. Global Jets ETF (NYSE:JETS) climbed 4.5% as plunging fuel costs lifted carriers. The iShares U.S. Home Construction ETF (BATS:ITB) gained 1.6% despite a softer June homebuilder confidence reading.
Memory and chip names dominated the gainers. Western Digital Corp. (NASDAQ:WDC) soared 14.3% after a wave of bullish analyst targets, with JPMorgan lifting its target to $650, BofA Securities to $610 and Wells Fargo to $575 on tight memory supply and durable AI storage demand into 2027.
Peers Micron Technology Inc. (NASDAQ:MU) and Sandisk Corp. (NASDAQ:SNDK) rose more than 6%. Entegris Inc. (NASDAQ:ENTG) jumped 10.7% on semiconductor-materials tailwinds, a Mizuho price-target increase and a cross-licensing settlement with JSR and Inpria covering EUV metal-oxide resist patents.
On the downside, Fox Corp. (NASDAQ:FOXA) cratered 16.6% after the media company agreed to acquire streaming pioneer Roku Inc. (NASDAQ:ROKU) for $160 per share in cash and stock, a deal valuing Roku at nearly $22 billion that investors viewed as richly priced.
Fiserv Inc. (NASDAQ:FISV) slid 8.2% after Chief Executive Mike Lyons abruptly stepped down to lead Truist Financial Corp. (NYSE:TFC), prompting several analyst downgrades over strategic continuity; Truist shares fell 3.9%. Alcoa Corp. (NYSE:AA) dropped 9.7% as aluminum futures slid nearly 5% on the easing of Middle East supply risks and expectations of a 2026 surplus.
Energy producers tracked crude lower across the board, with Exxon Mobil Corp. (NYSE:XOM) off 4.0% and Chevron Corp. (NYSE:CVX) down 3.8%. Murphy USA Inc. (NYSE:MUSA) tumbled 5.5%.
Monday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Western Digital Corp. | +14.25% |
| DoorDash, Inc. (NASDAQ:DASH) | +11.74% |
| Reddit, Inc. (NYSE:RDDT) | +11.03% |
| Entegris, Inc. | +10.66% |
| Circle Internet Group, Inc. (NYSE:CRCL) | +10.46% |
Monday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| Fox Corporation | -16.58% |
| Alcoa Corporation | -9.68% |
| Fiserv, Inc. | -8.16% |
| Dillard’s, Inc. | -6.09% |
| Murphy USA Inc. | -5.48% |
Image: Shutterstock
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