The S&P 500 surged 2.51% to 6,782.81, buoyed by news of a U.S.–Iran ceasefire, while the Nasdaq Composite and Dow Jones Industrial Average also saw significant gains of 2.80% and 2.85%, respectively. Mega-cap tech stocks led the charge, with Meta Platforms jumping 6.49% following the debut of its Muse Spark AI, and semiconductor giant ASML rising 8.74% after a price target upgrade from TD Cowen. In contrast, energy stocks like Exxon Mobil and Chevron lagged due to a 15% drop in WTI crude prices, which fell to $96 a barrel as the Strait of Hormuz reopened.

This market rebound reflects a reassessment of inflation fears driven by falling oil prices, which may influence expectations for a potential rate cut later this year. However, Wall Street remains cautious, recognizing that ongoing negotiations are required for a lasting resolution to the conflict. Investors should closely monitor developments in the Strait of Hormuz and upcoming earnings reports for insights into future market dynamics.

StoxFeed tracks this as a market signal: Oil prices are responding to OPEC decisions and geopolitical tensions

Source: fool.com