Dow, S&P 500, Nasdaq, STOXX 600 Hit Records on Iran Deal, AI Rally

Key facts

• Major U.S. stock indexes and Europe's STOXX 600 reached record highs.
• A preliminary U.S.-Iran peace agreement has eased inflation fears.
• Oil prices have plummeted following the U.S.-Iran agreement.
• Technology and AI-related stocks are contributing to the market rally.
• Asia-focused hedge funds reported over 100% returns on AI investments in the first five months of 2026.
• JPMorgan's trading desk has adopted a bullish stance on equities.
• NDR Auto and Divgi TorqTransfer are recommended stocks for Friday trading.
• The U.S.-Iran agreement is expected to ease inflationary pressures.
• SpaceX achieved a record-breaking IPO.
• Investor focus has shifted to the U.S.-Iran peace agreement and the Federal Reserve's upcoming meeting.

Global stock markets, including major U.S. indexes such as the Dow, S&P 500, and Nasdaq, as well as Europe's STOXX 600, have achieved record highs. This broad-based rally is largely attributed to a preliminary peace agreement between the U.S. and Iran, which has significantly eased inflation fears and led to a sharp decline in oil prices. The prospect of this agreement has improved investor sentiment across global equities and bonds. Technology and AI-related stocks, along with airlines and auto companies, are among the sectors experiencing substantial gains.

In Asia, the AI-driven market rally is further highlighted by the performance of several Asia-focused hedge funds. These funds have reported returns exceeding 100% in the first five months of 2026, primarily due to strategic investments in AI hardware and the broader semiconductor supply chain. The positive sentiment extends to specific stock recommendations, with NDR Auto and Divgi TorqTransfer being cited by analysts for Friday trading, driven by bullish technical trends and improved equity sentiment. JPMorgan's trading desk has also adopted a bullish stance on equities, citing growing optimism for a near-term peace agreement in the Middle East.

The preliminary U.S.-Iran peace agreement is expected to ease inflationary pressures and reduce the likelihood of further interest rate hikes by the Federal Reserve. This development is particularly beneficial for growth-oriented sectors. The potential reopening of the Strait of Hormuz, a critical shipping lane, has already had a notable impact on oil prices, contributing to the overall market optimism. The success of SpaceX's initial public offering, which achieved record-breaking metrics, has been somewhat overshadowed by the investor focus on the U.S.-Iran peace hopes and the Federal Reserve's upcoming policy meeting.