The collapse in energy prices eased inflation fears and powered a sharp rally in technology stocks.
“Ships are starting to move, many loaded up with oil, out of the Strait of Hormuz. They are going along the Southern ‘Highway,’ which is totally safe, secure, and pristine,” President Donald Trump wrote on Truth Social Monday.
Senior U.S. officials said traffic through the strait would rise immediately, though full reopening would take time owing to mine removal, with the deal due to be signed in Switzerland on June 19.
West Texas Intermediate crude slid 5.3% to around $80.37 a barrel, while Brent dropped 5.0% to roughly $82.93, both touching two-month lows as the prospect of restored Persian Gulf exports unwound the conflict’s risk premium.
The retreat in oil rippled through rates markets. The 10-year Treasury yield eased 3 basis points to about 4.46%, its lowest in a month, while the 2-year fell 4 basis points to 4.05% and the 30-year held near 4.97%.
Across U.S. equity markets by midday Monday, gains were broad-based.
The S&P 500 climbed 1.8% to 7,567, while the Dow Jones Industrial Average advanced 684 points, or 1.3%, to 51,886. The Nasdaq 100 outpaced the tape with a 2.9% surge to 30,485. Within Magnificent Seven stocks, Meta Platforms Inc. (NASDAQ:META) jumped 5.8%, while Nvidia Corp. (NASDAQ:NVDA) rose 3.4%, Amazon.com Inc. (NASDAQ:AMZN) gained 3.2% and Alphabet Inc. (NASDAQ:GOOGL) added 3.0%. The small-cap Russell 2000 climbed 1.3% to 2,983.
Gold, tracked by ...
