Stock Market Soars as Tech Sector Rallies Amid US-Iran Ceasefire Deal

US stocks recorded a substantial surge on Monday as the tech sector took the lead in gains, while oil prices experienced a steep decline. This phenomenon was largely attributed to investors' positive response to the recently announced US-Iran ceasefire deal, which aims to bring an end to hostilities and reopen the critical Strait of Hormuz waterway.

The tech-heavy Nasdaq Composite led the pack with impressive gains of over 3%, followed closely by the S&P 500, which jumped 1.6%. The Dow Jones Industrial Average also made significant strides, reaching a fresh record high on the heels of Friday's gains for Wall Street stocks.

President Trump announced the provisional agreement with Iran on Sunday, describing it as 'complete' on his social media platform. It is anticipated that talks to finalize the peace deal will commence within a 60-day timeframe.

The agreement could potentially enable oil tankers to resume activity in the Strait of Hormuz as early as this week, though a return to normal flows may take several months. It is worth noting that a lack of clarity regarding the deal's specifics is causing unease among shipowners and other operators.

Oil prices suffered a significant drop, with global benchmark Brent crude futures plummeting by 4.7% to around $83 a barrel. Meanwhile, West Texas Intermediate futures witnessed a decline of over 5%, albeit holding above $80 a barrel as concerns over supply disruptions diminished.

On the individual stock front, Fox faced a 15% decline following its announcement of a $22 billion deal to acquire Roku. The streaming pioneer's stock experienced a slight adjustment, falling 1% and undoing previous gains made on Friday.

Wall Street began the week on a high note, buoyed by the success of SpaceX's recent public debut on Friday. Shares in the Elon Musk-led company enjoyed a near-20% surge on Monday.

The upcoming week holds significant importance, particularly with the Federal Reserve's policy decision scheduled for Wednesday. Market expectations suggest that the Fed will maintain its current interest rate stance, with CME FedWatch data indicating a greater-than 98% probability of no change.

The NYSE and Nasdaq will observe a trading holiday on Friday in recognition of Juneteenth.