Dow jumps 600 points while SpaceX shares soar again after US-Iran peace deal

US stock markets rallied on Monday after US President Donald Trump announced that an agreement had been reached with Iran to end the conflict between the two countries.

The Dow Jones Industrial Average rose more than 600 points, gaining 1.2 percent and reaching a fresh intraday record high. The S&P 500 climbed 1.6 percent, while the Nasdaq Composite jumped 2.4 percent.

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Investor optimism also pushed SpaceX shares up more than 7 percent during their second day of public trading after the company surged 19 percent in its stock market debut on Friday.

“It seems to be much more orderly than what I expected, and that’s not a bad thing,” Brian Mulberry, chief market strategist at Zacks Investment Management, told CNBC.

“This is not some type of a meme stock right out of the gate, that it actually is people adding it and holding it in their portfolio,” he added.

Markets also reacted to falling oil prices after Trump said the Strait of Hormuz would reopen leading to US crude oil dropping around 5 percent to nearly $80 per barrel.

Vice President JD Vance told CNBC the strait was expected to remain “opened in a toll-free way for the long term”.

Investors are now closely watching this week’s US Federal Reserve meeting, with traders increasingly betting interest rates will remain unchanged through the rest of the year.