US stocks have increased because there is hope that a new deal to end the US-Israel war on Iran will bring stability back to energy supply chains. The S&P 500 rose by 1.7 percent on Monday, getting close to its highest level ever.
The Nasdaq Composite, which focuses on technology, jumped by 3.1 percent. This rise followed a huge 19.6 percent gain by SpaceX, which had the largest market debut in history and made Elon Musk the world’s first trillionaire. The Dow Jones Industrial Average also rose by 0.9 percent, reaching a record high.
Brent crude futures, which are important for global oil prices, fell nearly 5 percent to just above $83 a barrel, the lowest price since the conflict began. Asian stock markets continued to rise after a slow start. Japan’s Nikkei 225 index briefly reached 70,000 for the first time but later fell to around 0.6 percent.
Jay Goldberg, a senior analyst, explained that the deal between the US and Iran made investors more confident. He said that with the war appearing to end, people feel safer investing again. However, it may take months for energy supplies to return to normal due to many ships waiting in the Strait of Hormuz. About 500 ships still need to pass through this important waterway.
Test Your Understanding
How much do you know?
