Dow Surges to Record High as Trump Signs Iran Deal Memorandum

Stocks rose on Monday, driven by a surge in the Dow Jones Industrial Average, which added 681 points to reach a new all-time high. The S&P 500 climbed 1.9%, while the Nasdaq Composite popped 3.1%.

SpaceX shares soared more than 14% after a strong public market debut on Friday. According to Brian Mulberry, chief market strategist at Zacks Investment Management, the rally is orderly and a positive sign for the market.

President Trump announced on social media that a deal with Iran was "now complete," with the memorandum of understanding to be formally signed on Friday in Switzerland. The agreement is expected to alleviate pressure on the FOMC commentary and have a positive impact on the market in the long term.

The announcement led to a significant drop in oil prices, with U.S. crude falling 5% to around $80 per barrel. The price of gold also saw a rebound, moving closer to Barclays' fair value estimate of $4,150 an ounce.

The pan-European Stoxx 600 finished Monday's session in positive territory, up 0.25% as investors welcomed the end of the Iran war. Most regional bourses traded higher, with France's Cac 40 and Germany's DAX adding 0.4% and 1.1%, respectively.

Asian markets also surged, with Japan's Nikkei 225 jumping 5% to a record intraday high. South Korea's Kospi rose 5.2%, while Hong Kong's Hang Seng Index was up 0.56%.

The U.S.-Iran deal is expected to have a positive impact on the global economy, with the reopening of the Strait of Hormuz and the end of the naval blockade of Iran leading to increased oil production and lower prices.