The Dow rose 607 points, or 1.2%, while the S&P 500 gained 1.3%. The tech-heavy Nasdaq Composite outperformed, advancing 2.2% amid broad-based risk-on sentiment.
Investor optimism was fueled by Trump’s statement late Sunday that a deal with Iran was “now complete.” According to Pakistan Prime Minister Shehbaz Sharif, a memorandum of understanding is expected to be signed in Switzerland on Friday.
The geopolitical breakthrough also eased concerns over global energy supplies. Trump said he had authorised the reopening of the Strait of Hormuz, a critical shipping route for global crude flows. Vice President JD Vance told CNBC that he expects the waterway to remain open on a toll-free basis over the long term.
Oil prices retreated sharply following the developments, with US crude futures falling about 5% to trade near $80 a barrel.
Among individual stocks, SpaceX shares jumped 6%, extending gains after soaring 19% during their public market debut on Friday.
Investors are now turning their attention to key economic data releases this week, including housing and retail sales figures.
Markets are also closely watching the Federal Reserve’s policy meeting, with Fed funds futures indicating a more than 98% probability that policymakers will leave interest rates unchanged, according to CME FedWatch data.
