Stocks hit new highs across the board
The three major US stock indexes closed at record highs on the same day for the first time in 2026. The S&P 500 broke through 6,500, while the Dow Jones Industrial Average and the Nasdaq Composite also set new records. The rally marked a stark turnaround from earlier in the year when the US-Iran conflict had pushed markets lower. Analysts said the market is pricing in a resolution to the conflict and a reopening of global trade routes.
Iran deal hopes drive energy and transport stocks
Oil prices fell sharply on the prospect of a peace deal that would reopen the Strait of Hormuz to commercial shipping. Brent crude dropped below $70 a barrel for the first time in months. Airlines and shipping companies rallied on expectations of lower fuel costs. Energy stocks lagged the broader market as crude prices declined. The US 500 index, tracking large-cap stocks, posted gains for a fifth straight session.
Federal Reserve remains in focus
Investors are also watching the Federal Reserve for signals on interest rate policy. Recent economic data showed a strong labor market and sticky inflation, leading some analysts to predict the Fed will hold rates steady at its next meeting. Market expectations for rate cuts have been pushed to later in the year. The strong stock market performance has boosted consumer confidence, though some economists warn that valuations are stretched.