Overview
- President Trump announced a U.S.–Iran framework on Sunday that said commercial traffic would resume through the Strait of Hormuz and markets reacted by pricing a lower energy risk premium.
- Brent and WTI crude fell roughly 3–5% on Monday as traders marked down the chance of prolonged Gulf supply disruption and energy stocks led losses.
- SpaceX’s blockbuster IPO continued to lift sentiment after a roughly 19% first-day gain and a valuation near $2.1 trillion, reinforcing investor appetite for large tech growth stories.
- Technology and AI-related names, especially semiconductor and memory makers such as Nvidia, Micron, TSMC and SK Hynix, led the equity rebound as investors rotated out of energy.
- Key risks remain because U.S. trailing 12‑month inflation is about 4.2% for May, the Iran understanding is a framework with implementation questions, and the Federal Reserve’s policy decision this week under Kevin Warsh could reframe the rally given stretched valuation measures like the Shiller/CAPE.