Wall Street soars with US-Iran deal on radar; Dow Jones renews record

Wall Street's main stock indices are trading higher this Monday (15), with the Dow Jones reaching an intraday high, after the United States and Iran reached a preliminary agreement to end the war in the Middle East.

The President of the United States, Donald Trump, published on the social network Truth Social on Sunday (14) that the Strait of Hormuz should be reopened after the signing of the agreement with Iran. Previously, in a publication on social networks, the Prime Minister of Pakistan, Shehbaz Sharif, had informed that the official signing ceremony will take place on Friday (19) in Switzerland.

President Donald Trump recently declared that the Strait of Hormuz is already "partially open" and that it will be fully opened when the US and Iran formally sign a memorandum of understanding later this week.

Trump and Vice President JD Vance virtually signed a memorandum of understanding with Iran, according to a senior US administration official. The speaker of Iran's Parliament, Mohammad Bagher Ghalibaf, signed the document on the Iranian side, according to information from the official. A formal signing ceremony will still take place on Friday (19), the official added.

Some questions, however, remain open. The United States stated that Hormuz would be reopened after the signing of the interim agreement, with Trump emphasizing that the crossing would be "permanently free". However, two semi-official Iranian news agencies with links to the Revolutionary Guard reported on Monday that while Tehran will allow free transit during the 60-day period in which new negotiations take place, it plans to impose fees after that period.

At around 1:50 pm, Brasília time, the Dow Jones rose 1.36%, to 51,896 points, while the Nasdaq rose 2.88%, to 26,635 points, and the S&P 500 advanced 1.85%, to 7,568 points.

WTI oil, the US benchmark for July, was down more than 5%, at US$80.41 a barrel. Brent oil, the global benchmark, for August fell more than 4%, to US$83.05 per barrel.

With oil prices at their lowest level since March, airline and cruise stocks, sensitive to energy prices, benefited and energy stocks fell.

United Airlines rose 5.3%, while Delta Air Lines and American Airlines registered increases of 1.9% and 3.7%, respectively. Norwegian Cruise and Carnival each advanced more than 4%.

Shares in oil companies Exxon Mobil and Chevron fell around 3% each.

Among other market highlights, SpaceX advanced more than 11%, extending gains after its debut on the Nasdaq on Friday (12). SpaceX's IPO raised US$85.7 billion in the United States with the placement of the supplementary lot ("greenshoe") by the coordinating banks.

American Express, in turn, gained more than 3% after announcing the purchase of restaurant reservation platform TheFork, from Tripadvisor.

In addition, traders expect the Fed to maintain interest rates on Wednesday (17), but have reduced expectations for a 25 basis point increase by the end of the year to 70%, down from 100% the previous week, according to LSEG data.

*With information from CNN International and Reuters

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Source: CNN