Stocks jumped out of the gate and stayed higher through the close as market participants cheered news of potential peace in the Middle East. Oil prices, meanwhile, cratered as reports of a deal to end the months-long war circulated, though the Federal Reserve is still likely to stay on hold at this week's meeting.
Over the weekend, Pakistani Prime Minister Shehbaz Sharif announced on X "that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED." President Donald Trump later confirmed the news.
"The Deal with the Islamic Republic of Iran is now complete," Trump wrote in a post on Truth Social. In a separate post, the president noted that the Strait of Hormuz will be open "upon the signing of the Deal on Friday."
Oil prices fell as a result, with front-month West Texas Intermediate crude futures tumbling 4.9% to $80.75 per barrel — their lowest settlement since early March.
Stocks, on the other hand, soared. The blue-chip Dow Jones Industrial Average was up 0.9% at 51,671 — a new record closing high — the broader S&P 500 was 1.7% higher at 7,554, and the tech-heavy Nasdaq Composite had jumped 3.1% to 26,683.
Sinking oil prices won't change the Fed's path this week
The Federal Reserve will kick off its June policy meeting tomorrow and deliver its first statement under the leadership of new Chair Kevin Warsh on Wednesday afternoon.
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Spiking oil prices as a result of the war in Iran have accelerated inflation, putting the chances for rate cuts this year at zero. And while energy prices are down from their wartime highs, it's unlikely the Federal Open Market Committee will lower the federal funds rate anytime soon.
However, what this does is quiet calls for rate hikes, which have increased in recent weeks.
Roku drops despite $22 billion buyout offer
In single stock news, Roku (ROKU) fell 1.9% even after Fox (FOX, -15.2%) said it will buy the streaming device maker in a cash-and-stock deal valued at $22 billion, or $160 per ROKU share — a more than 11% premium to the stock's June 12 close.
Track all markets on TradingViewTypically, stocks rise to the per-share offer once the offer is announced, but Roku surged nearly 23% on Friday on rumors of a potential buyout so some of the premium was already priced in.
TD Cowen more than doubles its Micron price target
Micron Technology (MU) was on the positive side of the ledger today, surging 10.8% after TD Cowen analyst Krish Sankar reiterated a Buy rating on the red-hot chip stock and lifted his price target to $1,500 from $660. This new target price represents implied upside of 38% to current levels.
Track all markets on TradingViewSankar believes demand for the memory chipmaker's products will help pricing strength "persist into the second half of calendar year 2027." Additionally, he sees Micron's role in artificial intelligence as "structural, not cyclical," which will provide a tailwind for earnings over the next several years.
Micron will report its fiscal third-quarter results after the June 24 close and Wall Street is expecting revenue to rise nearly fourfold from the year prior and earnings to surge to $19.69 per share from $1.91 per share.
SpaceX soars in first full trading day
SpaceX (SPCX) also had a strong showing in its first full session. After closing Friday more than 19% above its IPO price, SPCX stock finished Monday up 19.6% at $192.50.
Track all markets on TradingViewThe SpaceX IPO "has reinvigorated the tech trade," says Louis Navellier of Navellier & Associates. "The success of such a huge IPO, now valued at $2.26 trillion, paves the way for the other outsized IPOs in the pipeline: Anthropic and OpenAI."
