US stock market hits record high amid hopes for Strait of Hormuz reopening
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- S&P 500 surged 1.8% to top 7,700 for the first time, blasting past its previous record of 7,620.90 set June 2 and lifting the index 12.80% year-to-date.
- Palantir Technologies shares soared 29.5% after forecasting-busting second-quarter revenue of $1.94 bn, making it one of the session's biggest gainers.
- Dow Jones climbed 1.7% to 54,085.88, setting a new record for a second straight day, while Asian markets joined the rally with Japan's Nikkei 225 up 3% and Seoul's Kospi up 4.6%.
- Brent crude fell about 5% overnight to $79.11 per barrel, down roughly 13% from the prior week, on hopes an end to Strait of Hormuz disruption is near.
- Iran and US officials touted progress in Oman-mediated talks: Secretary of State Marco Rubio said a deal could happen "very shortly," Treasury Secretary Scott Bessent said agreement could come as soon as Tuesday or Wednesday, and Iran's Foreign Ministry spokesperson Esmaeil Baghaei called the talks "positive."
- Strait of Hormuz traffic has collapsed to just 9 vessel transits on Sunday versus roughly 130 daily before the US-Israel war on Iran began in late February; US Central Command says it has assisted more than 1,000 vessels over the past three months.
Why it matters: With Brent crude down roughly 13% in a week and Palantir soaring 29.5%, traders are pricing a near-term US-Iran deal that would restore one-fifth of global oil flows through the Strait of Hormuz—but Sunday's transit count of just 9 vessels versus roughly 130 daily before the war shows the market is betting on a diplomatic outcome that the physical shipping reality has yet to deliver.
