Dow Hits Record High, Nasdaq And S&P 500 Jump On US-Iran Deal And SpaceX Optimism — SPCX, NVDA, ROKU, CRM, AMZN In Focus

• The S&P 500 and the Nasdaq 100 rose 1.9% and 2.9%, respectively, while the Dow Jones gained 1.4%.
• SpaceX stock closed nearly 20% higher on Monday, soaring for the second session since its Nasdaq debut on Friday.
• A memorandum of understanding will be signed between the U.S. and Iran in Switzerland on Friday. 

U.S. stock indices gained on Monday with the Nasdaq recording its best session since March as investors cheered a potential deal between U.S. and Iran, while SpaceX extended strong gains from its debut on Friday last week. 

The S&P 500 gained 1.9%, Nasdaq jumped 2.9% and the Dow Jones rose 1.4%. The Russell 2000, which tracks stocks with small market capitalizations, inched 0.7% higher. Among sectors, technology, industrials and consumer discretionary shares led gains.  

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) rose 1.7%, and Invesco QQQ Trust (QQQ) ended Monday around 3% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) ended 1.03% higher. 

The VanEck Semiconductor ETF (SMH) jumped 1.7%.

However, retail sentiment on Stocktwits for SPY, DIA and QQQ was ‘bearish’ with ‘normal’ to ‘high’ message volumes.  

One user expressed concern over Trump’s $300 billion reconstruction fund being sent to Iran. 

US Market Drivers

Trump said on Sunday in a Truth Social post that a deal with Iran was “now complete.” The memorandum of understanding will be formally signed on Friday in Switzerland, according to Pakistan Prime Minister Shehbaz Sharif. 

A senior Trump administration official told reporters that a deal has already been signed electronically. On Monday, Vice President JD Vance told CNBC that he expects the strait is “going to be opened in a toll-free way for the long term.” U.S. crude closed down around 4.9% at $80.75 per barrel, as per data quoted by CNBC.

“Volatility may persist in the near term as markets assess the implementation and durability of the deal, but we maintain our view that resilient growth and robust earnings should continue to drive stocks higher,” said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office to Bloomberg in an interview. 

Meanwhile, SpaceX shares popped more than 19% for the second consecutive session since its debut on Friday. The company also mentioned in a press statement that it raised $85.7 billion in its IPO, up from the $75 billion that SpaceX initially sold in its public offering on Friday. 

Investors will also be keeping a keen eye on the US Fed ahead of its next policy decision on Wednesday, with economists expecting the central bank to keep its benchmark rate in a range of 3.5% to 3.75%.

Trending Stocks To Watch 

SpaceX (SPCX): Elon Musk-controlled SpaceX jumped for the second straight session, up about 19.6% a day after its Nasdaq debut. The stock overthrew TSMC to be the sixth largest firm by market-cap globally.   

Nvidia (NVDA): The stock drew investor attention on Monday after reports said the chipmaker is seeking to raise at least $20 billion through its first bond offering since 2021. 

Roku (ROKU):  Fox Corp. (FOXA, FOX) announced an agreement to acquire the streaming platform in a $22 billion cash-and-stock deal, confirming a much-speculated buyout rumor. However, Roku shareholders seemed underwhelmed, with some questioning whether the offer reflects the company’s strategic value.  

Salesforce (CRM): agreed to buy Fin, a firm that develops artificial intelligence-powered customer agents, for about $3.6 billion. 

Amazon (AMZN): The company announced plans to invest several billion dollars to build a state-of-the-art data center campus in Montgomery County, Missouri. 

Read More: AMZN Stock Jumps — Amazon Announces Multibillion-Dollar Data Center Expansion In Missouri

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