US stocks: Dow hits record high on Iran deal optimism, lower oil prices
Published Mon, Jun 15, 2026 · 10:36 PM
WALL Street’s main indexes rose on Monday (Jun 15), with the Dow touching an intraday high after the United States and Iran struck a preliminary agreement to end their war and reopen the Strait of Hormuz, leading to a sharp fall in crude prices.
The framework for a deal, however, did not address key issues such as Teheran’s nuclear programme and the conflict between Israel and Lebanon. The pact is expected to be formally signed in Switzerland on Friday.
Crude prices slid about 5 per cent following the news and hit their lowest level since March, aiding shares of energy-sensitive airline and cruise stocks and hurting energy shares.
United Airlines rose 6.4 per cent, while Delta Air Lines and American Airlines added 4.1 per cent and 5.2 per cent, respectively. Norwegian Cruise and Carnival Corp advanced 5.2 per cent each.
Shares of oil majors Exxon Mobil and Chevron fell. The S&P 500 energy index was down 3.9 per cent.
The CBOE Volatility Index, considered Wall Street’s fear gauge, slipped to a more than one-week low at 16.31 points. It had risen to a more than two-month high the previous week.
The three main indexes were on track for a third straight session of gains, recovering after geopolitical tensions and a pullback in AI-related stocks paused Wall Street’s record climb.
“The hope is that maybe with some pressure off of inflation… at some point, the Federal Reserve may be able to cut interest rates,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.
“This is a much better environment for equities going forward.”
Chip stocks moved higher, with Micron soaring 9 per cent after multiple brokerages raised its price targets, while Nvidia was up 2.3 per cent, Intel added 5.2 per cent and Marvell Technology rose 5.5 per cent.
The Philadelphia SE Semiconductor index gained 4.8 per cent, while the S&P 500 tech index rose 2.9 per cent.
Seven of the 11 major S&P 500 sectors were in the green, with technology shares leading gains.
A resumption of oil flows from the Middle East and easing crude prices could give the US Federal Reserve room to maneuver as it grapples with inflation.
Last week’s inflation data showed higher energy costs filtering into consumer inflation for May, sharpening focus on the central bank’s outlook at its policy meeting, due later this week, which will be Chair Kevin Warsh’s first since taking charge.
Traders expect the Fed to leave interest rates unchanged this week, but have pared back expectations for a 25-basis-point hike by the end of the year to 70 per cent, from fully priced in the previous week, according to LSEG data.
At 9.54 am, the Dow Jones Industrial Average rose 590.87 points, or 1.15 per cent, to 51,793.13, the S&P 500 added 118.27 points, or 1.59 per cent, to 7,549.73, and the Nasdaq Composite gained 651.90 points, or 2.52 per cent, to 26,540.74.
SpaceX’s shares rose 7.9 per cent after the Elon Musk-led firm ended its blockbuster IPO with a more than US$2 trillion valuation.
Markets were relieved by the smooth trading during its landmark Nasdaq launch, setting a new template for companies and exchanges bracing for the highly anticipated OpenAI and Anthropic IPOs expected later this year.
In other movers, Paramount Skydance’s shares rose 3.4 per cent after the US Justice Department cleared its Warner Bros acquisition.
Fox tumbled 18.2 per cent after the company said it would buy Roku in a US$22 billion deal. The streaming platform fell 2.5 per cent.
Advancing issues outnumbered decliners by a 3.08-to-1 ratio on the NYSE and a 3.39-to-1 ratio on the Nasdaq.
The S&P 500 posted 38 new 52-week highs and three new lows, while the Nasdaq Composite recorded 165 new highs and 32 new lows. REUTERS
