Wall Street rises on Iran peace hopes, SpaceX debut surges

Hopes of a U.S.-Iran peace deal sent a relief wave through markets, with traders betting that a calmer Strait of Hormuz could push oil lower, ease inflation pressure and give the Federal Reserve more room to hold rates steady. U.S. stocks ended higher on June 12, and oil sank to a three-month low as investors reacted to signs that Washington and Tehran were moving closer to a deal.

The market moved on reports that U.S. and Iranian officials said an agreement to end the war was close and that both sides had agreed on a text. A reported 14-point document included a commitment for Iran to reopen the Strait of Hormuz within 30 days, a detail with immediate market weight because the waterway is one of the world’s most important energy chokepoints. Donald Trump later denied on Truth Social that any final deal had been reached, leaving traders to balance the prospect of de-escalation against the risk that negotiations could still break down.

The same session delivered an eye-catching debut for SpaceX. Shares jumped 19% in their first day of trading on Nasdaq, lifting the company’s valuation above $2 trillion. The record-setting initial public offering raised about $75 billion and became Wall Street’s biggest public listing in history, underscoring how quickly money still chases the largest growth stories even in a more uncertain policy backdrop.

That appetite for moonshots is now colliding with the next Federal Reserve meeting, where Kevin Warsh will preside over his first session as chair on June 16-17. Investors are watching for clues on how the central bank views recent job growth, accelerating inflation and the path of interest rates. If geopolitics keeps oil subdued, that could help the inflation outlook; if the Fed sounds more hawkish, the higher-rate backdrop could pressure the same high-valuation names that have powered the market’s rally.

For retirement savers and borrowers alike, the chain reaction is direct. A peace deal that calms the Middle East can ripple into cheaper fuel, softer inflation and a less aggressive Fed, while a tougher policy stance would quickly test whether Wall Street’s newest moonshots can keep climbing.