Peace Premium. Stocks and bonds rallied Thursday while oil prices dipped to their lowest levels since the Iran war began, as investors celebrated news that the conflict seems to be drawing to a close.

President Donald Trump signed a 14-point memorandum of understanding with Iran Wednesday evening, marking an important step toward winding down months of hostilities and reopening the Strait of Hormuz.

The MOU pauses hostilities for 60 days, lifts the U.S. naval blockade of the strait, and creates a path for the U.S. to remove sanctions against Iran. Meanwhile, Iran pledges in the document not to produce nuclear weapons. Traffic through the strait will also resume to prewar levels.

The S&P 500 rose 1.1%, while the Nasdaq Composite increased 1.9%. The Dow Jones Industrial Average ended the day up 72 points, or 0.1%. Brent crude futures dipped about 0.2% to just under $80 a barrel, approaching pre-war prices.

As I note in this week’s issue of Barron’s Global Signals, there are various details to iron out, including specifics on Iran’s nuclear program, and there’s also a chance that the deal falls apart entirely. Even if everything goes smoothly, don’t expect the global economy to go back to business as usual. While the conflict was relatively short, it fundamentally altered the existing global economic order by disrupting the energy industry, reshaping regional partnerships, and changing the way countries think about their security.

Still, the progress in drafting a lasting peace deal helped the market recover from Wednesday’s Fed-driven shock. Kevin Warsh’s address was terse following his first Fed meeting as chair, but his messaging carried decidedly hawkish undertones, fueling bets that the central bank may raise interest rates later this year.

Today, the iShares U.S. Technology ETF jumped 2.9%, while the Nasdaq saw its largest volume day on record, according to Dow Jones Market Data.

“Never underestimate stock traders’ willingness to step into any breach in tech stocks’ upward momentum,” wrote Steve Sosnick, chief strategist at Interactive Brokers.

For now investors are betting that even a more hawkish Fed can’t kill off the bull run.

Markets will be closed tomorrow for the Juneteenth holiday. Review & Preview will be off, as well. We’ll be back in your inboxes on Monday night.

Watch our TV show on Fox Business Saturday and Sunday at 10:30 a.m. ET. This week, Wharton professor Jeremy Siegel on whether the AI boom is sustainable. Plus, more on the Barron’s list of top CEOs and a look at what comes next for SpaceX.

The Hot Stock: Sandisk +11.5%
The Biggest Loser: Accenture -18.0%

Best Sector: Information Technology +2.7%
Worst Sector: Energy -1.7%

Knicks fans weren’t the only ones celebrating the team’s NBA championship at their New York City parade on Thursday. Madison Square Garden investors were also cheering the action.

Madison Square Garden Sports owns both the Knicks and the New York Rangers, valued at about $9.75 billion and $4 billion, respectively. As recently as September 2025—when my colleague Andrew Bary recommended buying shares—the company’s stock traded at a steep discount to its assets, commanding a valuation of $5.3 billion.

Since then, the stock has returned 72% and sits just below record highs.

Chris Marangi, co-chief investment officer of Gabelli Funds and a longtime investor in Madison Square Garden Sports, tells my colleague Josh Schafer that the key catalyst for the stock has been the potential that both teams split into separate companies.

“For sports teams, the key long term value for investors is realized when a sale is made,” Josh writes. “Otherwise the valuation is just an estimated figure.”

But, as Marangi tells Josh, winning “doesn’t hurt.” And a new generation of fans should boost the franchise’s value in the long run.

Read Josh’s full story here.

Markets are closed tomorrow in honor of Juneteenth National Independence Day.

Wall Street returns from the long weekend on Monday with a handful of key earnings reports and the Federal Reserve’s preferred inflation gauge on tap.

FedEx and KB Home will report results on Tuesday, followed by Micron Technology, Paychex, and Trip.com on Wednesday. Results from Darden Restaurants, FedEx Freight, and McCormick are due on Thursday.

The Bureau of Economic Analysis will release the personal consumption expenditures price index for May on Thursday.

Other economic data releases to watch next week include S&P Global’s Manufacturing and Services Purchasing Managers’ Indexes for June on Tuesday, May new home sales from the Census Bureau on Wednesday, and May Durable Goods from the BEA on Thursday.

—Connor Smith

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