Market rally following US-Iran deal

On Monday, U.S. and Iran agreed to an interim peace deal, reopening the Strait of Hormuz and easing tensions. This drove a broad market rally, with the S&P 500, Dow Jones, and Nasdaq 100 indices closing up 1.67%, 1.24%, and 2.79% respectively. Oil prices plummeted, with WTI crude falling 5.12% to a two-month low, as the deal increased supply expectations.

The market rally was driven by increased risk appetite, with tech stocks leading the gains. Oil-related stocks and ETFs like XLE and OIH underperformed due to lower oil prices. Canadian stocks also advanced sharply, extending gains from the previous week. Meanwhile, Middle East crude benchmarks Dubai and Murban slumped, opening arbitrage opportunities to the U.S. and Europe.

Investors should watch for the full details of the U.S.-Iran peace agreement, which are yet to be disclosed. Additionally, the upcoming Federal Reserve meeting on May 3-4 will provide insights into the central bank's policy stance, which could influence market sentiment. Lastly, oil prices will be closely monitored as they react to the increased supply expectations and potential changes in OPEC+ production cuts.