Wall Street cleared of war clouds, record rally and dawn of a new order > News

The record surge in the New York stock market was caused by the news that the United States and Iran had suddenly signed a memorandum of understanding (MOU) ending the war. The agreement, which involved President Donald Trump, Vice President JD Vance, and Iran's Iranian Speaker Mohammad Bagher Ghalibaf, codifies an immediate cessation of hostilities and the reopening of the Strait of Hormuz. The official signing ceremony scheduled for Geneva, Switzerland on the 19th is expected to be a decisive opportunity to announce the thawing mood between the two countries at home and abroad. The market interpreted this as the end of the supply chain crisis originating from the Middle East, and used the sharp drop in energy prices, which had been a factor of instability, as a key driving force for the rise in stock prices.

Falling energy prices mean easing inflationary pressures, which has completely changed expectations about the Fed's monetary policy. As Brent crude oil and West Texas Intermediate (WTI) fell to their lowest levels in three months, investors worried about rising prices began betting on the possibility of interest rates being frozen or cut. In particular, the market's attention is focused on the FOMC meeting starting on the 16th as it is the debut stage for new Chairman Kevin Worth. Expectations that a departure from the existing hawkish stance would result in flexible policies that reflect the calming effect of oil price stabilization served as a support for the decline in government bond yields and the stock market rally.

Technology stocks and the semiconductor sector were at the forefront of this rally and led the market mood. Micron soared by more than 10%, and AI chip-related stocks such as NVIDIA and AMD also rose, leading to a 3% surge in the Nasdaq index. What's interesting is that Space It is not simply a flow of meme stocks aimed at short-term profits, but a large influx of funds aimed at long-term value investment, proving that Elon Musk's space industry has established itself as a new growth engine in the stock market.

Of course, caution is still being raised in some parts of the market. This is because the conflict between the two countries over detailed provisions, such as the specific implementation method of the previous agreement and the toll issue in the Strait of Hormuz, has not completely disappeared. However, Wall Street experts give great marks to this agreement for eliminating the biggest uncertainty that was causing market volatility. Capital, freed from the fear of war, is now continuing active circulation between cyclical stocks and technology stocks, and optimism that the upward trend will continue until the end of the year is gradually gaining strength based on the solid performance of companies.