U.S. President Donald Trump has announced that the United States and Iran have reached a preliminary agreement to end hostilities in the Middle East, with both parties agreeing to cease military operations across all fronts. The memorandum of understanding was electronically signed on Sunday, with a formal ceremony scheduled for Friday in Switzerland. The agreement includes the reopening of the Strait of Hormuz; President Trump, while meeting with French President Emmanuel Macron, noted that the strait has already been partially reopened.

The development has cooled concerns over crude oil supply, causing U.S. crude oil futures to settle down 4.9% on Monday to approximately $81 per barrel. This sharp decline in oil prices is alleviating market inflation fears, prompting a shift in capital back toward risk assets. Markets expect the pullback in oil prices to reduce interest rate hike pressure on the Federal Reserve, ahead of the first policy meeting to be chaired by new Fed Chair Kevin Warsh.

According to the CME FedWatch Tool, traders widely anticipate that the Federal Reserve will hold interest rates steady on Wednesday, maintaining the benchmark rate in the 3.5% to 3.75% range. Meanwhile, the Bank of Japan is expected to raise its benchmark rate to the highest level since 1995, while the Reserve Bank of Australia is projected to leave rates unchanged.

Tech Sector Leads U.S. Stock Rally; SpaceX Market Cap Crosses $2.5 Trillion

Bolstered by easing inflation concerns, the Dow Jones Industrial Average climbed 468.77 points to close at a record high of 51,671.03. The S&P 500 gained 1.65% to reach 7,554.29, while the Nasdaq Composite surged 3.07% to 26,683.94. The VIX, a key gauge of market volatility, declined for the third consecutive session.

SpaceX (SPCX) soared 19.6% on its second day of trading, closing at $192.46 as the company’s market capitalization officially surpassed $2.5 trillion. Analysts noted that this landmark listing is expected to provide a favorable backdrop for the planned IPOs of OpenAI and Anthropic later this year.

Semiconductor stocks staged a robust rebound, with the Philadelphia Semiconductor Index jumping over 5% to hit a record closing high. NVIDIA (NVDA) rose 3.54% as the company announced the issuance of $25 billion in high-grade bonds. Taiwan-related ADRs closed mostly higher, with TSMC ADR (TSM-US) gaining 4.14% and UMC ADR (UMC-US) surging 6.80%.

Crypto Market Follows Macro Sentiment; Bitcoin Holds Steady at $66K

Against the backdrop of a significant rally in U.S. stocks driven by eased geopolitical tensions, the cryptocurrency market displayed steady momentum. According to the latest market data, Bitcoin (BTC) has posted a modest 1% gain over the past 24 hours, trading at $66,163.00.

Ethereum (ETH) showed relative strength, rising 3.89% over the same period to reclaim the $1,788 level. As the market anticipates the Federal Reserve potentially holding rates steady, the trend of capital flowing back into risk assets has provided solid price support for the broader market.

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