The Dow Jones ended 150 points higher, having traded in a narrow range through the session. However, the S&P 500 and the Nasdaq, both tech-heavy indices, ended the session with losses of 0.4% and 1.3% respectively.
Progress In US-Iran Talks
Markets reacted to US Vice President JD Vance’s statements that there was progress made in talks held in Switzerland between the US and Iran, during which Iran has agreed to let the International Atomic Energy Agency (IAEA) inspectors back in to Tehran, which he called, a major step towards ending Iran’s nuclear weapons program.
In turn, the US Treasury Department allowed the production, sale and export of Iranian oil for a 60-day period, technically allowing US refiners to also purchase Iranian crude, something that was under embargo since 1995.
Crude oil prices fell after the announcement and Brent crude is on the verge of giving up all the gains made during the Iran war.
Why S&P 500, Nasdaq Fell On Monday?
Most big tech companies witnessed a bout of profit booking on Monday, led by Alphabet, whose shares fell 5% after two major high profile exits.
Shares of Nvidia, Meta, Microsoft, Amazon were also down between 1% and 5% on Monday.
SpaceX Free Fall Continues
Shares of Elon Musk’s SpaceX, after a high-profile listing and an equally high-profile surge, is seeing sharp unwinding of positions. The stock fell 16% on Monday, extending its losing streak to the third straight session, and wiping out over $600 billion in market value during this period.
At the close of Monday’s trade, SpaceX’s market cap remained just above the $2 trillion mark. Yet, retail investor interest remains in the stock with the cohort having purchased the stock more than the entire Mag7 combined, according to data from Vanda Research.
The street will be awaiting results from FedEx later in the day, along with some macro data points as well.
