Wall Street’s main indexes rose sharply on Monday after the United States and Iran reached a preliminary agreement aimed at ending their conflict and reopening the Strait of Hormuz. Lower crude prices supported technology, airline and cruise stocks, while energy companies moved lower.

The Dow Jones Industrial Average reached a fresh intraday record. At 9:54 a.m. Eastern Time, the index gained 590.87 points, or 1.15%, to 51,793.13. The S&P 500 rose 1.59% to 7,549.73, while the NASDAQ Composite climbed 2.52% to 26,540.74.

Iran Agreement Lifts Wall Street Sentiment

The proposed agreement calls for an end to fighting between the United States and Iran. It also covers the reopening of the Strait of Hormuz, a major route for global oil and gas shipments. Pakistan helped mediate the talks, with a formal signing expected in Switzerland on Friday.

However, the framework does not settle several central disputes. Iran’s nuclear program remains outside the current terms. Questions also remain over the conflict involving Israel and Hezbollah in Lebanon. These gaps created doubts about whether the planned agreement can provide lasting stability.

President Donald Trump said the deal was ‘now complete.’ However, the planned signing has not taken place, and several operating details remain unclear. The agreement allows free passage through Hormuz for an initial period, although future shipping terms could require further talks.

Lower Oil Prices Support Airlines and Cruises

Crude prices fell about 5% after the announcement and reached their lowest level since March. Brent crude traded near $83 per barrel, while West Texas Intermediate dropped close to $80. Lower oil prices reduce fuel costs for airlines, cruise operators and transport companies.

United Airlines gained 6.4%, while American Airlines rose 5.2%. Delta Air Lines added 4.1%. Norwegian Cruise Line and Carnival increased 5.2% each as investors responded to the prospect of lower operating expenses and improved travel demand.

Still, doubts remain over how quickly normal shipping can return. Tanker companies and insurers may seek proof that the ceasefire will hold before sending more vessels through the strait. Analysts have also warned that oil traffic may take several weeks to recover.

“Even if the deal reopens the strait immediately, it will not prevent inflation from rising a bit further in the near term,” Capital Economics economist Neil Shearing said. The statement reflected uncertainty over how soon lower crude costs will reach households and businesses.

Technology Stocks Lead Broad Market Gains

Technology shares led gains across the S&P 500 as chipmakers recovered from recent selling. The S&P 500 technology sector rose 2.9%, while the Philadelphia Semiconductor Index advanced 4.8%.

Micron Technology jumped 9% after several brokerages raised their price targets. Intel and Marvell Technology gained more than 5% each, while Nvidia advanced 2.3%. Seven of the S&P 500’s 11 main sectors traded higher during the morning session.

SpaceX rose 7.9% during its second day of trading. The company completed its stock market debut on Friday with a valuation above $2 trillion. Its shares gained 19% during the first session, followed by further buying on Monday.

Market volatility also eased. The Cboe Volatility Index fell to 16.31, its lowest reading in more than one week. It had reached a two-month high during the previous week as conflict risks and rising energy prices weakened investor confidence.

Energy Shares Fall as Fed Meeting Approaches

Lower crude prices weighed on major energy companies. Exxon Mobil and Chevron each fell about 5%, while the S&P 500 energy sector declined 3.9%. The drop marked a reversal from gains recorded while disrupted oil supplies supported higher prices.

Investors also turned their attention to the Federal Reserve’s policy meeting later this week. Officials are widely expected to keep interest rates unchanged. However, lower oil prices may ease some pressure from energy-driven inflation if the decline lasts.

“The hope is that maybe with some pressure off inflation, at some point the Federal Reserve may be able to cut interest rates,” Dakota Wealth senior portfolio manager Robert Pavlik said. Yet the path remains uncertain, as May inflation data showed rising energy costs feeding into consumer prices.

In company news, Paramount Skydance rose after the Justice Department cleared its planned acquisition of Warner Bros. Discovery. Fox dropped 18.2% after announcing a $22 billion deal to buy Roku, while Roku shares declined 2.5%.

Advancing stocks outnumbered declining shares by more than three to one on both the New York Stock Exchange and NASDAQ. The S&P 500 recorded 38 new 52-week highs, while the NASDAQ Composite posted 165.

Also Read: Stock Market Update: Nifty 50, Sensex Set for Gap-Up Opening as US-Iran Peace Deal & Falling Oil Prices Lift Markets