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US STOCKS END SHARPLY HIGHER, CHIP INDEX HITS FRESH RECORD

Wall Street ended sharply higher, with big gains in Micron Technology and other AI chipmakers after the United States and Iran struck a preliminary agreement to end the Iran war and reopen the Strait of Hormuz.

With oil prices already falling, investors are betting on less inflation and lower chances the Federal Reserve will be forced to raise interest rates, even as the deal does not address the key issues of Tehran's nuclear program and the Israel-Lebanon conflict.

High-growth stocks related to AI rallied, with Nvidia NVDA.O jumping over 3% and Micron MU.O surging almost 11%, hitting a record high after TD Cowen raised its price target on the memory chipmaker.

Micron is up over 280% so far in 2026.

The PHLX chip index .SOX jumped about 5.5% to a record closing high. The chip index has more than recovered from a steep 12% drop from June 3 through June 10.

SpaceX SPCX.O surged almost 20% in its second day on Wall Street, with investors betting on heavy demand for its relatively small float of shares when the company is added to the Nasdaq 100 .NDX and FTSE Russell indexes over the next few days and weeks.

The Dow Jones Industrial Average .DJI also registered a record closing high.

With Monday's gain, the S&P 500 .SPX is less than 1% below its record high close on June 2.

Here is Monday's final snapshot:

(Noel Randewich)

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EARLIER ON LIVE MARKETS:

THAT WAS QUICK! CHIPS BACK TO RECORD HIGHS AFTER STEEP DROP CLICK HERE

AI BOOM FACES REALITY CHECK AS SPENDING OUTPACES NEED CLICK HERE

WAR IS OVER: INDUSTRIAL OUTPUT, EMPIRE STATE, HOMEBUILDER SENTIMENT CLICK HERE

US STOCKS JUMP AS IRAN PACT SENDS OIL SLIDING; DOW EYES RECORD CLOSE CLICK HERE

AI CAPEX BOOM COULD WEIGH ON SHORT-TERM ROE FOR HYPERSCALERS, GOLDMAN WARNS CLICK HERE

BULLISH REVERSAL REIGNITES S&P 500’S RUN AT RECORD HIGHS CLICK HERE

EUROPE'S DATA CENTRE BOOM HITS A POWER WALL CLICK HERE

BARCLAYS RECOMMENDS ADDING TO GOLD EXPOSURE CLICK HERE

COPPER: THE ROUTE TO $15,000/TON CLICK HERE

HORMUZ AGREEMENT DEALS A STRAIT FLUSH TO MARKETS CLICK HERE

EUROPE BEFORE THE BELL: STOCKS SET FOR BIG JUMP ON HORMUZ AGREEMENT CLICK HERE

MARKETS CELEBRATE MOU ON SOH CLICK HERE