Dow Jones Rises 611 Points as Brent Crude Falls 4.9%
Dow Jones Industrial Average futures moved sharply higher on Monday, with the dow jones up 611 points, or 1.2 per cent, at 10 a.m. Eastern time after the United States and Iran reached a tentative deal to extend their ceasefire and reopen the Strait of Hormuz. Brent crude dropped 4.9 per cent to US$83.04 a barrel, pulling relief into stocks and pressure out of energy prices.
Wall Street Bets on Cheaper Oil
1.5 per cent was the S&P 500’s gain on Monday, while the Nasdaq composite added 2.4 per cent. That move followed the tentative agreement to restore the global flow of crude through the Strait of Hormuz, a route that has helped keep oil and inflation elevated during the conflict.
4.2 per cent was the rise in United Airlines, 3.9 per cent was the gain in American Airlines, and 5.4 per cent was the jump in Carnival. Those shares tend to track fuel costs closely, so the market’s read-through was immediate: a lower oil bill can improve margins for carriers and cruise operators faster than it reaches the wider economy.
Brent at US$83.04 After a Sharp Swing
US$83.04 a barrel put Brent back to where it was in early March, after trading at roughly US$70 more than three months ago and above US$100 just a few weeks ago. The move shows how quickly the market has repriced the war premium as the ceasefire talks advanced and the shipping chokepoint moved toward reopening.
7.7 per cent was Micron Technology’s gain, 7.3 per cent was Advanced Micro Devices, and 1.8 per cent was Nvidia’s rise. SpaceX added 7.9 per cent in its second day of trading on Wall Street, giving the company a total value of more than US$2.1 trillion and adding another layer of risk appetite to a session already driven by lower energy prices.
Pakistan Sets Friday Signing
Friday in Switzerland is when Pakistan said the agreement would be signed, and the implementation would not begin until that happens. Broader negotiations on Iran’s nuclear program are expected to continue over the next 60 days, which leaves the market with a deal to price now and a wider political process still to run.
4.45 per cent was the yield on the 10-year Treasury late Monday, down from 4.48 per cent late Friday, a small move that fits the same trade: less oil pressure, less urgency for tighter policy, and more room for rate-sensitive assets to hold their rebound if the ceasefire holds together.
