Wall Street surged Monday, with the Dow Jones Industrial Average rising 150 points and the S&P 500 and Nasdaq posting solid gains, as optimism over a US-Iran peace deal drove oil prices close to levels seen before the war. The rally came despite lingering worries about further Federal Reserve interest rate hikes, signaling a risk-on mood among investors. Chip stocks powered the Nasdaq higher, according to MarketWatch.
The catalyst was news that the United States and Iran signed an initial deal aimed at ending the conflict, sending crude prices tumbling. The Wall Street Journal reported that stocks rallied and gas prices fell as the two nations moved ahead on the agreement. Meanwhile, Bloomberg noted that bonds also gained, reflecting a broad market shift as oil sank.
While the broader market celebrated, consulting giant Accenture saw its shares plunge 20% after its revenue outlook missed expectations. Barron's characterized the drop as a historic stock crash triggered by a worsening outlook and a cloudy AI future. CEO Julie Sweet acknowledged that AI transformation will "take some time" as the stock took another hit, per Business Insider.
The rally underscores how geopolitical détente can outweigh monetary policy concerns in the short term. Lower oil prices may ease inflationary pressures, potentially giving the Fed less reason to tighten aggressively. For Accenture, the sell-off highlights deep uncertainty in the consultancy market, particularly around the pace of AI adoption and enterprise spending.
Some analysts caution that the Iran deal remains initial and fragile, and a breakdown in talks could reverse the oil-price drop and fuel volatility. Additionally, Fed rate hikes are still on the table, which could curb risk appetite.