SpaceX Rockets Higher on Second Day of Trading

Stock markets rallied worldwide Monday, and oil prices eased after the United States and Iran reached a tentative deal to extend their ceasefire and reopen the Strait of Hormuz to get the global flow of crude going again. Stocks rose on hopes that this time, the announcement of an Iran-US agreement will mean a long-term fix to a conflict that has worsened inflation around the world

• The S&P 500 rose 122.83 points, or 1.7%, to 7,554.29.
• The Dow Jones Industrial Average rose 468.77 points, or 0.9%, to 51,671.03.
• The Nasdaq composite rose 795.10 points, or 3.1%, to 26,683.94.

Stocks got a lift after the price for a barrel of Brent crude oil fell 4.8% to $83.17, back to where it was in early March. While that's still above its price of roughly $70 from before the war, it's lower than the $100 plus it cost just a few weeks ago. The hope is that lower oil prices will take pressure off households and businesses, which have had to pay higher prices for everything from food to fuel to fertilizer because of the war with Iran, the AP reports. In stock markets abroad, indexes climbed in Asia and Europe. Japan's Nikkei 225 leaped 5% for one of the world's biggest gains and finished at a record.

Iran confirmed the deal, but it does not include a final agreement on issues like Iran's nuclear program. Negotiations on that are expected to continue over the next 60 days, which leaves opportunity for hiccups that could derail the agreement. And even if the Strait of Hormuz does fully reopen on Friday as expected, it will likely take months for the energy industry to get back to full speed. For now, though, relief swept through financial markets worldwide.

• On Wall Street, stocks of companies with big fuel bills were instant winners. United Airlines flew 3.9% higher, and cruise operator Royal Caribbean Group rose 6.6%.
• Stocks of companies enmeshed in the artificial-intelligence industry also jumped. Micron Technology rallied 10.8%, and Advanced Micro Devices rose 7%. Nvidia's climb of 3.5% was the strongest force pushing the S&P 500 upward because the AI chip company is Wall Street's most valuable company, giving it more weight on the index than any other.

SpaceX, Elon Musk's rocket company that also owns the AI company xAI, rose 19.6% in its second day of trading on Wall Street. Its successful debut on the Nasdaq suggested plenty of demand still exists among investors for AI. The market has given SpaceX a total value of more than $2.1 trillion, making it bigger than Exxon Mobil, Bank of America, and Coca-Cola combined. Elsewhere on Wall Street, Roku fell 1.9% after the company announced that Fox Corp. is buying the streaming pioneer in a cash-and-stock deal valued at approximately $22 billion. Roku's stock soared 20% on Friday, when media reports emerged about a deal.

In the bond market, Treasury yields eased on hopes that lower oil prices will remove pressure on central banks to raise interest rates. Europe's central bank last week became the first major one in the world to raise interest rates because of the war with Iran. The Fed will announce its latest decision on interest rates later this week, which will be the first under its new chair, Kevin Warsh. Traders see it as a near certainty that the Fed will leave its main interest rate steady after its two-day meeting ends Wednesday.

• Traders had been raising bets that the Fed may have to raise interest rates this year because of how much inflation has accelerated and how solid the US job market remains. But the tentative deal between the United States and Iran means traders are now betting on only a 57% chance of a hike this year, down from 71% a week ago, according to data from CME Group.