NEW YORK — The U.S. government declared the Strait of Hormuz open, a statement coinciding with negotiator Scott Bessent's assertion that a deal with Iran is close. The Nasdaq Composite rose 2.6 percent, closing at 26,585, reflecting a broad rally in technology stocks. The S&P 500 gained 1.8 percent, ending the session at 7,737.
An agreement with Iran is expected to lift sanctions, potentially adding significant crude oil supply to global markets. Increased supply typically leads to lower oil prices, easing inflationary pressure across the economy. That is a clear positive for growth-oriented technology stocks, as a reduced inflation threat can limit the need for aggressive interest rate hikes.
Microsoft (MSFT) gained 1.1 percent to $492.81 and Alphabet (GOOGL) rose 1.1 percent to $377.65. Nvidia (NVDA) climbed 2.6 percent to $211.94, benefiting from the improved macro backdrop. Amazon (AMZN) dropped 2.3 percent to $277.42, a notable divergence that suggests investors are weighing company-specific pressures despite the broader tailwind.
Apple (AAPL) rose 2.0 percent to $309.38, reflecting optimism for sustained consumer demand. Tesla (TSLA) gained 1.6 percent to $327.35, as lower fuel costs could support electric vehicle adoption by improving consumer affordability.
The Russell 2000 gained 1.8 percent to 3,037, signaling broad market participation in the rally.
Key details investors should track include the verified increase in Iranian oil production and the duration of sanctions relief, both of which will determine whether the energy-price tailwind is sustained.
