Wall Street Highlights: S&P 500, Nasdaq Rally on Deal to Reopen Strait of Hormuz; SpaceX Gains

"The AI-capex momentum story continues" with Nvidia taking advantage of markets to raise funds, Brandon Pizzurro, Chief Investment Officer at GuideStone, said.

Walmart Inc. slipped after China summoned Sam's Club over food safety issues at brick-and-mortar stores and online shops. Centene Corp. fell after the company announced it is offering buyouts to most employees to cut expenses after membership in its health insurance plans sank.

Fiserv Inc. shares slumped 11% after the surprise departure of Chief Executive Officer Michael Lyons, who quit to take the top job at Truist Financial Corp. Truist shares shed 6.2%.t

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Robinhood Markets Inc. rallied 5.3%. Piper Sandler analyst Patrick Moley cited a World Cup-fueled prediction-market volume surge, and wrote that the soccer tournament was "like the Super Bowl but every day."

In deal news, Fox Corp. agreed to acquire Roku Inc. for $160 a share in a cash-and-stock transaction that values the streaming video platform at about $22 billion. The deal represents an 11% premium to Roku's Friday close.

SpaceX shares rose on their first full day of trading after a record $75 billion initial public offering on Friday. Elon Musk's company was the most bought stock by retail investors for a second consecutive session, with net buying set to clear $100 million for the second day in a row, said Vanda Research. On a net basis, retail investors have now bought almost as much SpaceX over the last two sessions as they bought across the entire US stock market last week, said the firm.

In a development that could affect the artificial-intelligence industry, the Trump Administration took the unprecedented step of ordering Anthropic PBC to disable access to its most advanced AI platforms for all foreign nationals. The US government issued the order after discovering it is possible to "jailbreak," or bypass security guardrails, of the Fable 5 AI model Anthropic released just days ago.

The broader stock jump on Monday comes after the S&P 500 had already rebounded late last week as President Donald Trump signaled the possibility of an Iran deal. The benchmark closed Friday about 2% below its record high from earlier in June.

Inflation assessments come at a crucial time, with interest-rate decisions due this week from the Fed and a number of other central banks.

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Fed Chairman Warsh "will face a searing credibility test," RSM Chief Economist Joseph Brusuelas wrote in a Monday note. "The supply shock unleashed by the war is still working its way through the economy, and the build-out of artificial intelligence infrastructure is creating its own supply chain challenges. Put another way, we have not yet reached a peak in inflation."

Sectors in Focus

• Energy stocks slumped while airlines rallied on the Iran deal. Shares in miners and cruiseline operators also gained. 
• S&P 500 industrials jumped to a record as the prospect of a US-Iran deal raised hopes the energy crisis threatening firms' profits will recede. "The market sees this relief in oil prices as a positive for the economy, so that's good for industrials broadly, that's good for transports and that's good for airlines," said Keith Lerner, chief market strategist at Truist Advisory Services.