The U.S. markets began the week on a high note following a deal between the U.S. and Iran aimed at resolving tensions in the Middle East. The Dow Jones Industrial Average reached a record high, while tech stocks propelled the Nasdaq to its best performance since late March.
President Donald Trump announced the deal during the G7 summit, stating that the Strait of Hormuz is partially opened and will be fully operational by Friday. Vice President J.D. Vance indicated that while details remain to be finalized, the U.S. holds a strong negotiating position regarding Iran's nuclear commitments.
As a result of these developments, crude oil prices fell approximately 5% on Monday, reflecting reduced geopolitical risk. This easing of tensions may influence central banks' upcoming decisions, particularly as inflation remains a concern.
The Bank of Japan is expected to raise rates to their highest level in three decades, while the Reserve Bank of Australia may pause after three consecutive hikes. Additionally, Kevin Warsh will lead his first Federal Reserve meeting, where no rate changes are anticipated, but his guidance will be closely monitored.
In the tech sector, SpaceX's IPO saw a significant increase, and Nvidia is planning a $20 billion bond offering. Furthermore, Fox Corp. announced its acquisition of Roku for $22 billion, highlighting ongoing media consolidation amid industry challenges