US markets extended their gains on Monday as optimism surrounding the US-Iran peace agreement combined with continued enthusiasm for artificial intelligence stocks and SpaceX’s blockbuster market debut.
SpaceX shares climbed a further 7.2% on their second day of trading to around $172, taking gains since the IPO to more than 27%. The rally has pushed the company’s valuation close to $2.3 trillion, cementing its position among the world’s most valuable listed businesses.
Investor interest has also been fuelled by SpaceX’s ownership of the artificial intelligence company xAI, adding another dimension to the investment case beyond its dominant position in space launches and satellite communications.
The momentum spread across the broader AI sector, with semiconductor stocks posting strong gains. Micron Technology surged 8.2%, AMD jumped 8.1%, while AI heavyweight Nvidia added 1.9%.
Nvidia continued to provide the single largest contribution to gains in the S&P 500 due to its status as the most valuable company on Wall Street and its significant weighting within major equity indices.
The combination of falling oil prices and AI-driven buying helped push US equities to fresh record highs. The Dow Jones Industrial Average climbed above 51,857 points, surpassing the previous record set earlier in June.
Investors welcomed the prospect of lower energy costs following the US-Iran agreement, which is expected to reopen the Strait of Hormuz and ease concerns over global oil supplies. Lower oil prices have reduced inflation fears and improved expectations for corporate profitability.
Wall Street hits record high
The tech-heavy Nasdaq Composite jumped 2.4% in early trading, helped by a strong second day for SpaceX shares, which surged 8.7% at the open. Broader markets also moved higher, with the Dow Jones Industrial Average gaining 1.2% and the S&P 500 rising 1.5%, shrugging off reports that Iran plans to impose transit fees on vessels using the Strait of Hormuz.
Among the Dow’s strongest performers were aerospace giant Boeing, up 4%, construction equipment manufacturer Caterpillar, which gained 3.6%, and Amazon, which advanced 3.3%.
The rally was not limited to large-cap stocks. The Russell 2000 index, which tracks smaller US companies, also reached a record high after rising 1.5%, suggesting investor confidence is broadening beyond the technology sector.
With geopolitical tensions easing, oil prices falling and AI-related enthusiasm remaining firmly intact, Wall Street continues to benefit from a powerful combination of macroeconomic and sector-specific tailwinds.
