The market closed higher on Monday, with all three major indices posting gains. The S&P 500 rose 1.65%, the Nasdaq Composite climbed 3.07%, and the Dow Jones Industrial Average increased 0.92%. The broad-based rally was driven by a potential deal between the U.S. and Iran, which could reopen the Strait of Hormuz and alleviate concerns about oil supply disruptions. Oil prices fell sharply in response to the news, with Brent crude dropping over 10% on the day. The tech sector, particularly SpaceX, saw significant gains, with the company's stock surging after its blockbuster IPO and Elon Musk becoming the world's first trillionaire. The overall tone was risk-on, with investors taking advantage of the improved geopolitical outlook and favorable oil market conditions.

The market's rally was uneven, with the Nasdaq leading the way due to its heavy weighting in tech stocks. The Dow, while also up, saw a more modest gain, reflecting its lower exposure to the tech sector. The potential Iran deal was the most significant macro driver, with the news sending oil prices tumbling and boosting risk appetite. Other notable themes included the continued strength of the tech sector, with SpaceX and other tech stocks benefiting from the market's risk-on sentiment. Additionally, the market saw gains in the energy sector, with oil and gas stocks rising on the back of falling crude prices. The market's performance was also influenced by the strong earnings season, with many companies reporting solid results ahead of the close.