Stock Market Surges as SpaceX Makes Historic IPO Debut

The S&P 500 rose 1.91% to 7,573.19, the Nasdaq Composite jumped 3.00% to 26,666.03, and the Dow Jones Industrial Average gained 1.41% to 51,922.03, fueled by a broad risk-on rally.

SpaceX extended its blockbuster IPO gains, while semiconductor names like Micron Technology and Western Digital advanced on AI optimism and risk appetite.

The US and Iran have agreed on a framework for peace, which includes plans to reopen the Strait of Hormuz and allow oil tanker transit to resume, causing oil to fall to its lowest level in three months.

Energy stocks lagged, but artificial intelligence, semiconductor, and travel stocks gained as investors shifted to growth stocks, with SpaceX's record-breaking IPO reinforcing bullish sentiment.

Despite the rally, some analysts remain cautious due to sky-high valuations and warning signs, including the tone of the upcoming Federal Reserve meeting and rising bond yields.