US Stock Market Rises Amid Hopes for Energy Deal with Iran

US Stocks Rise as Iran Deal Hopes Boost Energy Market

The S&P 500 index rose 1.7 percent on Monday, bringing it close to its all-time high. The Nasdaq Composite jumped 3.1 percent, with SpaceX contributing a significant gain of 19.6 percent. The Dow Jones Industrial Average also climbed 0.9 percent, reaching a record high.

The tech-heavy Nasdaq’s increase was attributed to the recent market debut of SpaceX, which made Elon Musk the world’s first trillionaire. Brent crude futures fell nearly 5 percent to $83 per barrel, the lowest price since the start of the conflict in Iran.

Asian stock markets were largely unchanged on Monday morning, following a surge the previous day after US President Donald Trump announced his deal with Tehran. The Nikkei 225 index in Japan was down 0.01 percent, while South Korea’s Kospi fell 0.06 percent. Taiwan’s TAIEX rose 0.2 percent, and Hong Kong’s Hang Seng Index decreased 0.07 percent.

Analysts noted that the announcement of the US-Iran deal had shifted investors’ risk assessment, leading them to take on more market exposure. Jay Goldberg, a senior analyst at Seaport Research Partners, stated that the war in Iran has ended, allowing investors to reassess their stance and become more optimistic about taking on risk.

The agreement between Washington and Tehran is expected to restore stability to global energy markets, but it may take months for energy flows to return to normal due to the backlog of vessels around the Strait of Hormuz. The International Shipping Chamber reported that approximately 500 ships are waiting to pass through the strait, which normally carries about one-fifth of global oil and liquefied natural gas supplies.

Source: Al Jazeera