President Trump's announcement of a deal to end the war with Iran and reopen the Strait of Hormuz triggered a market rally, with the Dow Jones Industrial Average closing at a record for the 16th time this year. Oil prices dropped while bonds rallied, removing a major weight on investor sentiment that had persisted since late February.

The Strait of Hormuz, the world's most vital energy shipping artery, reopening provided the latest boost to what Neuberger Berman's Shannon Saccocia called a three-legged stool supporting markets. Wednesday's lower inflation data and Friday's SpaceX blockbuster debut had already lifted spirits, creating the best three-session stretch since May 2025 tariff de-escalation with China.

Technology shares led the charge as the PHLX Semiconductor Index surged 5.5%. European markets clawed back wartime losses with the Stoxx Europe 600 hitting a record high, while United Airlines jumped 3.9% to its own record. The rally reversed pressure from higher oil prices that had plagued airlines and pushed Spirit Airlines into bankruptcy earlier.

The Dow gained 0.9% or 468.77 points, the Nasdaq climbed 3.1%, and the S&P 500 added 1.7%. With geopolitical risk easing and energy flows restored, investors now price in both lower inflation and stable supply chains.