Stocks shot through the roof again on Tuesday as hopes for reopening the Strait of Hormuz increased significantly. Various parties involved in the geopolitical situation stated that a new proposal had been drafted, while also expressing optimism about reaching an agreement to reopen the crucial waterway. Furthermore, Iran has reportedly considered allowing European nations to remove mines from the Strait of Hormuz, marking a considerable milestone in the ongoing developments.
The Dow Jones Industrial Average rose 907 points to 54,086, a new record high. The Nasdaq rose 2.59% to 26,585, approaching its previous high. The S&P 500 gained 1.79% to reach 7,737, also setting a new record. Chipmakers rebounded significantly today, as did software companies.
Palantir Technologies deserves special mention after rising nearly 30% today—an exceptionally rare move for a large-cap company. This performance highlights the effects of changes in the underlying market structure over the past few years, with various dynamics making large swings increasingly common, even among the world’s largest companies by market capitalization.
The bond market also rallied sharply. Both the U.S. 5-year and 10-year Treasury yields declined by 7 basis points, to 4.33% and 4.61%, respectively.
Today’s economic data showed a mild decline in job openings but an increase in hiring, indicating steady demand for labor. This could allow the Federal Reserve to focus more closely on its price-stability mandate. Nevertheless, Friday’s jobs report will be the most important factor in determining the Fed’s next steps.
Private payroll and service-sector reports will be released tomorrow. Adams Wealth Advisors will also provide an update on SpaceX’s earnings, provided that no more significant developments arise.
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