Peace Deal Sparks Market Rally: SpaceX Soars 20%, Micron and ARM Lead Stocks Higher
U.S. stocks surged on Monday, with the $NASDAQ(.IXIC)$
Over the weekend, the U.S. and Iran announced an interim peace agreement and are expected to formally sign related documents later this week. The development sent oil prices sharply lower and prompted investors to reassess the outlook for inflation and interest rates.
Many investors believe that easing geopolitical tensions and the reopening of the Strait of Hormuz could help reduce upward pressure on energy prices, lowering the risk of further inflation acceleration. Falling oil prices also pushed Treasury yields lower, easing concerns that the Federal Reserve may need to keep interest rates elevated for longer.
Against this backdrop, growth and technology stocks regained favor.
Within the technology sector, storage stocks emerged as the market's strongest theme. As of writing, $Western Digital (WDC.US)$ surged 15%, $Micron Technology (MU.US)$ gained 11%, $Seagate Technology (STX.US)$ climbed over 9%, and $SanDisk (SNDK.US)$ advanced over 6%, leading the broader technology sector higher.
As AI server deployments, high-bandwidth memory (HBM) adoption, and data center investments continue to expand, investors are becoming increasingly bullish on long-term storage demand. As a critical component of AI infrastructure, the storage sector is emerging as one of the clearest beneficiaries of the ongoing AI investment cycle.
AI chip stocks also rallied sharply. $Arm Holdings (ARM.US)$ jumped over 8% to lead major AI chip names, while $Advanced Micro Devices (AMD.US)$ gained roughly 7% and $Intel (INTC.US)$ advanced 3%. Falling oil prices and lower Treasury yields helped fuel renewed buying across the AI and semiconductor sector, as investors refocused on long-term growth drivers including AI demand, data center expansion and enterprise spending.
High-growth names also attracted strong buying interest. $SpaceX (SPCX.US)$, fresh off the largest IPO in history, climbed about 20% and extended its post-listing rally. As one of the market's most closely watched growth stocks, SpaceX's continued strength highlights improving risk appetite and sustained investor enthusiasm for innovative technology companies.
Beyond technology, precious metals also rallied sharply.
Gold, silver, and related mining stocks moved higher, with $Newmont (NEM.US)$ and $Agnico Eagle (AEM.US)$ among the sector's top performers.
Notably, the rally in precious metals was driven less by safe-haven demand and more by falling Treasury yields. As lower oil prices helped ease inflation concerns, expectations for further rate hikes declined. A weaker U.S. dollar and lower bond yields increased the appeal of non-yielding assets such as gold.
From a market perspective, investors are increasingly shifting their focus away from geopolitical risks and toward moderating inflation and falling bond yields. As oil prices and Treasury yields move lower, capital is flowing back into AI, storage, SpaceX, and precious metals.
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