Oil prices fell on Monday to the lowest levels since early March following the announcement of a preliminary agreement between the U.S. and Iran to end the war that has strained the energy market.

West Texas Intermediate (WTI) crude oil prices were down over 5% during Monday’s trading session on the news, trading just above $80 a barrel.

Despite that decline, prices for the U.S. oil benchmark remain well above their pre-war levels, as oil prices were between $60 and $70 a barrel in the month leading up to the beginning of the conflict.

Prices for Brent crude, the global benchmark, were down over 3.6% on Monday and were trading below $80 a barrel for the first time since early March.

US OIL RESERVES DROP TOWARDS REAGAN-ERA LOWS, ‘SIGNIFICANT IMPACT AT THE PUMP’ COMING, EXPERTS WARN

President Donald Trump said a deal with Iran has been signed and will take effect this week. (Fatemeh Bahrami/Anadolu Agency/Getty Images)

The decline in oil prices occurred after President Donald Trump said that he signed a memorandum of understanding with Iran that aims to end the war, which has disrupted the flow of oil shipped via tankers transiting the Strait of Hormuz.

The vital chokepoint has had tanker traffic reduced substantially during the war, pushing oil prices higher and raising supply concerns in regions with limited oil production.

“The deal’s all signed. And the Strait is already partially opened,” Trump said after he arrived in France for the G7 summit.

ZELDIN TOUTS US ENERGY FUTURE, SAYS INDO-PACIFIC NATIONS INCREASINGLY INTEREST IN AMERICAN SUPPLY

Oil prices remain above their pre-war levels. (Reuters/Todd Korol)

An official signing ceremony is planned for Friday in Geneva, which is about an hour away from the summit’s location in Evian-les-Bains in the French Alps.

Trump was asked about when the Iran memorandum will be published publicly and said, “I think pretty soon, I would say. I mean, I want it to be released because it’s a very powerful document. It’s not like the Obama document, which was just a terrible document.”

“So probably pretty soon, I would say sometime after Friday, because the Strait opens – it’s open now, but it opens completely, we’ll have all the mines knocked out for the most part. We have a lot of lanes right now,” Trump said.

The president added that the agreement is “really a behavioral thing” when it comes to Iran because if “they do what they’re supposed to do, that starts taking effect.”

TRUMP OFFICIAL REVEALS WHERE CALIFORNIA GETS MUCH OF ITS OIL – AND CALLS IT A NATIONAL SECURITY THREAT

The disruption of oil flows from the Middle East has pushed consumer prices higher in the U.S., driving a jump in inflation. (Giuseppe Cacace/AFP via Getty Images)

The deal to end the war with Iran is expected to ease pressure on the Federal Reserve to raise interest rates to curb inflation, which surged to a three-year high in May as gas prices hit consumers’ budgets.

BMO’s U.S. rates strategist, Vail Hartman, said that the “oil shock is not over, and we are not at the point of reviving hopes of interest rate cuts this year. We would need more concrete changes in the macro outlook.”

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Reuters contributed to this report.

NEW YORK — ESPN personality Stephen A. Smith has thrown his support behind awarding filmmaker Spike Lee a New York Knicks championship ring, praising the longtime season-ticket holder’s decades of unwavering loyalty following the franchise’s first NBA title in 53 years.

The Knicks defeated the San Antonio Spurs in the 2026 NBA Finals, ending a championship drought dating back to 1973. Lee, one of the team’s most recognizable fans, has occupied courtside seats at Madison Square Garden since 1985 — the same year Patrick Ewing was drafted. His passionate support through years of heartbreak and rebuilds has made him a cultural symbol of Knicks fandom.

Smith, a prominent Knicks supporter himself, publicly endorsed the idea of presenting Lee with a ring in recognition of his extraordinary commitment. “I completely support this for Spike Lee. No Knicks’ fan deserves this more than him,” Smith stated.

The suggestion has sparked debate about the boundaries between players, staff and dedicated fans in championship celebrations. While championship rings are traditionally reserved for those directly involved in on-court or organizational roles, Lee’s four-decade investment and public advocacy have elevated his status to something closer to an honorary team member in the eyes of many supporters.

Lee’s Enduring Knicks Legacy

Spike Lee became a Knicks season-ticket holder in 1985 and has rarely missed home games, even during the franchise’s most difficult periods. Reports estimate he has spent more than $10 million on courtside seats over the years, with annual costs averaging around $300,000 in recent seasons. His presence at games, often captured in broadcasts wearing iconic Knicks gear, has become part of the Madison Square Garden experience.

Lee’s fandom extends beyond attendance. The Oscar-nominated director has used his platform to celebrate the team, criticize management during lean years, and champion players through highs and lows. From the Ewing era to the recent resurgence led by Jalen Brunson, Lee has embodied the resilience of Knicks supporters.

The 2026 title run, capped by a hard-fought series victory over the Spurs, represented the payoff for generations of fans. Lee’s emotional reaction to the clinching win was widely shared, symbolizing the catharsis felt across New York.

Smith’s Endorsement and Fan Reaction

Stephen A. Smith’s comments added significant weight to the ring discussion. Known for his passionate Knicks commentary, Smith has long highlighted Lee’s dedication as exceptional. During Finals coverage, he noted that while he personally would not seek a ring as a broadcaster, Lee’s unique position warranted special consideration.

The proposal has resonated with fans, many of whom view Lee as an extension of the organization itself. Social media erupted with support, with hashtags celebrating the idea of honoring “the ultimate Knicks fan.” Others cautioned that rings should remain exclusive to contributors on the court and in the front office to preserve their meaning.

Knicks ownership and leadership have not publicly commented on the suggestion. However, the franchise has a history of recognizing super fans and longtime supporters through various honors, including banner raisings and ceremonial events.

Historical Context of Fan Honors in Sports

Championship rings carry deep symbolic value in professional sports, representing sacrifice, achievement and belonging. While rare, precedents exist for extending honors beyond players and staff. Some teams have presented customized rings or equivalent memorabilia to legendary broadcasters, longtime season-ticket holders and community icons.

In basketball, the NBA has occasionally recognized exceptional contributions through ceremonial gestures. Lee’s case stands out due to the length of his commitment and his role in shaping the public image of Knicks basketball. His courtside presence has become as much a part of game-day tradition as the Knicks City Dancers or the signature blue and orange color scheme.

Critics of the idea argue that creating such exceptions could diminish the exclusivity of championship rings. Supporters counter that Lee’s financial and emotional investment over 41 years represents a different but equally meaningful form of contribution to the franchise’s cultural fabric.

The Knicks’ Championship Journey

The 2026 title marked a triumphant return to glory for the Knicks. Led by Brunson’s Finals MVP performance and a balanced roster featuring stars like Mikal Bridges and Karl-Anthony Towns, the team overcame early-season doubts to deliver New York its first championship since the early 1970s.

The victory triggered massive celebrations across the city, with the Empire State Building lit in Knicks colors and parades planned. For Lee, who had witnessed numerous false starts and painful playoff exits, the moment carried particular significance. His visible joy during the clinching game became one of the defining images of the championship run.

Broader Implications for Fan Culture

The discussion around Lee highlights evolving perspectives on fan engagement in modern sports. As ticket prices rise and access to elite seating becomes more exclusive, superfans like Lee represent a bridge between the organization and its loyal base. Honoring such dedication could strengthen community ties and enhance the fan experience.

Sports franchises increasingly recognize the value of cultivating deep emotional connections with supporters. Whether through personalized experiences, Hall of Fame inductions for fans or symbolic gestures like a championship ring, these acknowledgments can boost loyalty and brand strength.

For the Knicks, presenting Lee with a ring — or a customized equivalent — would send a powerful message about the importance of sustained fandom. It would also generate positive publicity and reinforce the team’s identity as one deeply rooted in New York culture.

Looking Ahead

As the Knicks begin their title defense, attention will turn to roster moves and preparations for the new season. The ring debate for Spike Lee adds an engaging subplot to the championship aftermath, reflecting the passion that defines Knicks basketball.

Regardless of the final decision, Lee’s place in franchise lore is secure. His four decades of support through triumph and tribulation embody the spirit of New York sports fans. Stephen A. Smith’s endorsement has amplified the conversation, ensuring that one of the most visible symbols of Knicks resilience receives due consideration.

The 2026 championship already stands as a landmark achievement. Whether or not Spike Lee receives a physical ring, his legacy as one of the greatest fans in NBA history remains firmly intact, a testament to loyalty that helped carry the franchise through its longest championship drought.

NEW YORK — The Dow Jones Industrial Average soared more than 600 points on Monday, closing at a record 51,835.82 after gaining 633.56 points or 1.24%, as investors cheered the U.S.-Iran peace agreement and the reopening of the Strait of Hormuz, easing fears of prolonged energy disruptions and boosting confidence across global markets.

The sharp advance marked one of the strongest sessions of the year, driven by relief over de-escalation in the Middle East and expectations of steadier oil prices. The S&P 500 and Nasdaq Composite also posted solid gains, reflecting broad-based buying as geopolitical risk premium faded from asset prices.

President Donald Trump’s announcement that the deal with Iran is complete and the immediate lifting of the naval blockade triggered a swift positive reaction. The prospect of unrestricted shipping through the critical Strait of Hormuz removed a major overhang that had weighed on energy markets and broader economic sentiment in recent months.

Peace Deal Fuels Risk-On Sentiment

The agreement, set for formal signing in Switzerland, includes an end to military operations and technical talks on Iran’s nuclear program. Oil prices fell sharply on the news, providing relief to consumers and industries while supporting sectors sensitive to energy costs.

Financial stocks led the Dow’s advance, with major banks benefiting from improved economic outlook and lower volatility expectations. Technology and industrial shares also gained ground as investors rotated into cyclical names. Energy stocks showed mixed performance, with some producers trimming gains as crude prices moderated.

Market participants welcomed the development as a significant step toward regional stability. “This removes a major source of uncertainty that had been hanging over markets,” one senior trader noted in floor commentary. The Dow’s record close reflects growing optimism that the ceasefire can hold and lead to normalized trade flows.

Broader Economic Context

The rally comes amid a resilient U.S. economy showing steady growth despite earlier concerns over inflation and interest rates. Corporate earnings have largely met or exceeded expectations, with particular strength in technology and financial services. The Federal Reserve’s measured approach to policy has provided a supportive backdrop for equities.

Analysts highlighted the deal’s potential to stabilize energy prices, which could help moderate inflationary pressures and support consumer spending. Lower fuel costs benefit transportation, manufacturing and household budgets, creating positive ripple effects across the economy.

The session also reflected continued confidence in the Trump administration’s ability to deliver on major foreign policy initiatives. The timing, coinciding with other positive developments including strong corporate results and easing global tensions, amplified the positive momentum.

Sector and Stock Highlights

Industrial giants such as Boeing and Caterpillar posted notable gains, benefiting from expectations of improved global trade. Financial names including Goldman Sachs and JPMorgan Chase advanced on lower volatility and stronger economic growth prospects. Technology components like Apple and Microsoft contributed steadily to the index rise.

Energy majors showed more muted moves as the market digested falling oil prices. The broader materials and consumer discretionary sectors also participated in the advance, signaling widespread relief across the economy.

Smaller companies and the Russell 2000 index outperformed on the session, indicating that investors were embracing risk and betting on broader economic participation beyond mega-cap names.

Global Market Reactions

European and Asian markets followed Wall Street higher in subsequent trading, with gains in energy-sensitive and export-oriented shares. The euro and other currencies strengthened modestly against the dollar as risk sentiment improved.

Oil futures declined several percent, easing pressure on import-dependent economies and supporting global growth forecasts. Gold and other safe-haven assets saw modest pullbacks as investors reduced defensive positioning.

Analyst Perspectives

Market strategists described the move as a classic risk-on reaction to geopolitical de-escalation. “Removing the Hormuz uncertainty is a big positive for global growth expectations,” one chief investment strategist said. “It allows markets to focus more on fundamentals like earnings and monetary policy.”

Some cautioned that implementation details and verification mechanisms would be key to sustaining the rally. Questions remain around long-term nuclear arrangements and regional security, which could introduce renewed volatility if talks stall.

Nevertheless, the consensus leaned optimistic. The Dow’s ability to push to new highs demonstrates underlying strength in the U.S. economy and corporate sector. Year-to-date performance remains robust, with the index on track for strong annual returns if current momentum holds.

Historical Significance

Monday’s gain adds to a series of record closes for the Dow in 2026, reflecting the market’s resilience amid shifting geopolitical and economic landscapes. The index has benefited from corporate innovation, resilient consumer spending and periodic relief from international tensions.

The current environment contrasts with periods of heightened uncertainty earlier in the year. Sustained progress on trade, energy security and domestic policy could support further upside, according to many observers.

Investor Implications

For individual investors, the session reinforces the importance of maintaining diversified portfolios capable of navigating both risks and opportunities. Those with exposure to cyclical sectors and international markets likely benefited most from the relief rally.

Financial advisers recommend focusing on companies with strong balance sheets, pricing power and exposure to long-term growth themes such as energy transition and technology. While geopolitical developments can drive short-term moves, underlying fundamentals remain the primary driver over time.

The Dow’s performance also highlights the interconnected nature of global markets. Developments in the Middle East continue to influence U.S. equities, underscoring the need for awareness of international events.

Looking Ahead

Attention now turns to upcoming economic data releases, corporate earnings and any further details on the Iran agreement implementation. The Federal Reserve’s next policy meeting will also be closely watched for signals on interest rate trajectory.

As markets digest the latest geopolitical breakthrough, the focus remains on whether the positive momentum can be sustained. Strong corporate fundamentals and easing external risks provide a constructive backdrop, though volatility is likely to persist given the fluid nature of international relations.

Monday’s record close for the Dow Jones Industrial Average represents a vote of confidence in the resilience of the U.S. economy and the potential for reduced global tensions to support growth. Investors will continue monitoring developments in the Middle East and their implications for energy prices, inflation and broader market sentiment in the weeks ahead.

The session serves as a reminder of markets’ sensitivity to geopolitical headlines while also showcasing their capacity for rapid recovery when major risks recede. For now, the Dow’s milestone underscores a cautiously optimistic outlook as 2026 progresses.

Fast Facts

REX NVDA Growth & Income ETF (NVII) is an actively managed ETF launched on 05/28/2025 with a primary objective of weekly income and a secondary objective of leveraged exposure to the common stock of NVIDIA Corporation (NVDA) with a daily factor between 1.05 and 1.5. NVII has a total expense ratio of 1.49% and an extremely high distribution rate: 48.12%. Distributions are paid on a weekly basis. NVII is a small but quite liquid ETF, with $102 million in assets under management and an average daily trading volume of $3.6 million. The fund’s issuer, REX Shares, specializes in alternative strategy ETFs and ETNs, in particular thematic, leveraged, and options income products.

Strategy

As described in the prospectus by REX Shares, the fund maintains notional exposure to the common stock of Nvidia between 105% and 150% of NAV using derivatives such as options, swap agreements, and leveraged ETFs on Nvidia, and may also hold the stock itself. The exact leverage factor may change based on real-time technical analysis. The portfolio is rebalanced on a daily basis to attain the targeted exposure every single day.

Additionally, the fund writes covered call options to generate income from premiums. These options may limit participation in the upside potential of the underlying stock. The fund also holds treasuries and cash equivalents as collateral for derivatives.

The fund may use a synthetic covered call strategy, with exposure in Nvidia obtained by a “synthetic long” using a combination of options designed to replicate the asset’s price return. A synthetic long consists of buying call options and selling put options on the underlying asset with the same expiration date and strike price.

There is no guarantee that the objectives of exposure and weekly distributions will be met. Distributions may have a high rate of ROC (return of capital), reducing NAV and therefore the amount of future distributions. Moreover, the daily rebalancing generates leveraged drift (“beta-slippage”), making unpredictable the leverage factor measured on a period longer than one day.

Portfolio

NVII has a 1.25 leverage factor, 120% of net asset value in cash equivalents and treasuries, and three positions in NVDA options, which currently are:

• A long call and a short put corresponding to a synthetic long expiring on 6/18/2026 with a strike price of 235.74.
• A short call (covered call) expiring the same day with a strike price of 208.97.

This is an example from 6/12/2026. Portfolio constituents and leverage may have changed by the time you read this and will, of course, change over time.

Fundamentals

Nvidia is the publicly traded company with the largest market capitalization in the world at the time of writing (about $5 trillion) and is classified by GICS in the Information Technology sector and in the Semiconductors industry. Its share price has been multiplied by 13 since January 2023, propelled by the company’s leadership in AI chips and market sentiment. Based on Seeking Alpha’s quantitative factor grades, NVDA has excellent growth and profitability characteristics, but stretched valuation.

Seeking Alpha’s aggregate quantitative ranking puts NVDA in 28^th position in its industry among 69 companies, with Micron Technology, Inc. (MU), Intel Corporation (INTC), and Advanced Micro Devices, Inc. (AMD) in the top ranks. As the tech environment changes, so can these rankings.

Historical Performance

Currently, NVII is 9% ahead of Nvidia in total return between its inception and 6/12/2026. It is encouraging, but the fund has a short history, and this gap may not be representative of its long-term potential.

In this time frame, the share price is close to flat, all the gains coming from distributions.

The weekly distributions have been very variable, with an average of $0.26 per share, as plotted below.

For 2026 until 6/12, distributions have been classified as 97.7% return of capital (“ROC”). High ROC may have a negative impact on a shareholder’s tax. For example, non-resident aliens (“NRA accounts”) may be initially submitted to withholding tax, with an adjustment at year-end that is not always automatic, depending on the broker. High return of capital over time can also indicate potential NAV decay.

NVII Vs. Competitors

The next table compares characteristics of NVII and four derivative income ETFs based on NVDA:

• YieldMax NVDA Option Income Strategy ETF (NVDY).
• Roundhill NVDA WeeklyPay™ ETF (NVDW).
• GraniteShares YieldBOOST NVDA ETF (NVYY).
• GraniteShares Autocallable NVDA ETF (ANV).

NVII has the highest expense ratio and the lowest yield, but the best total return.

Market Interest

The fund had a solid start in asset growth and investor interest, represented by outstanding shares and average volume on the next chart. As the popularity of the underlying (Nvidia) changes, this ETF could be affected. Waning investor interest would hurt NVII in terms of asset growth, and AUM could shrink. If implied volatility falls, this would diminish its income generation potential. Additionally, due to the leverage factor, price drops in Nvidia would be magnified.

Strengths And Risks

The strengths of NVII are:

• A very high yield.
• Weekly distributions.
• Sufficient liquidity.
• Outperformance compared to peers.

The risk factors of investing in the fund include:

• High expense ratio.
• Low AUM.
• Short history.
• Single stock exposure (company-specific risk).
• Active management (limited transparency).

Takeaway

NVII is best suited for investors who are bullish on Nvidia and seek to combine income and capital appreciation. The latter may only be achieved by reinvesting a part of distributions. Due to the risk factors listed above, this ETF is better used as a satellite rather than a core holding.

This article answers these three main questions about NVII:

• How does NVII incorporate income and Nvidia’s price action?
• How has NVII performed compared to its underlying stock and similar ETFs?
• What type of investor is NVII best suited for?

Editor’s note: This article is intended to provide a general overview of the ETF for educational purposes only and, unlike other articles on Seeking Alpha, does not offer an investment opinion about the ETF.

NEW YORK — The Nasdaq Composite climbed more than 600 points on Monday, closing at 26,498.53 after gaining 609.69 points or 2.36%, as investors embraced the US-Iran peace agreement and the reopening of the Strait of Hormuz, driving strong gains in technology and growth stocks amid reduced geopolitical uncertainty.

The session marked one of the strongest performances of the year for the tech-heavy index, reflecting broad relief that a potential prolonged energy crisis had been averted. Major technology companies led the advance, with semiconductor, software and internet stocks benefiting from improved risk sentiment and expectations of stable global economic conditions.

The US-Iran ceasefire announcement, which includes the immediate lifting of the naval blockade and reopening of the critical oil shipping lane, removed a significant overhang that had weighed on markets in recent weeks. President Donald Trump’s confirmation of the deal triggered a sharp positive reaction across equities, particularly in sectors sensitive to energy costs and global trade.

Tech Sector Powers Nasdaq Advance

Heavyweight technology names posted solid gains as lower oil prices eased inflationary concerns and supported spending on innovation and capital equipment. Companies with exposure to artificial intelligence, cloud computing and digital infrastructure were among the top performers, continuing a trend of strength in growth-oriented stocks.

The rally extended to broader growth names, with semiconductor manufacturers and electric vehicle-related shares advancing on expectations of steadier supply chains and consumer demand. The peace deal is seen as particularly beneficial for technology firms with global operations, reducing risks around international shipping and energy expenses.

Financial and industrial stocks also contributed meaningfully, rounding out a broad-based advance. The strong performance underscored the market’s sensitivity to geopolitical developments and its capacity for swift recovery when major risks recede.

Broader Market Context

The Nasdaq’s surge aligned with gains in the Dow Jones Industrial Average and S&P 500, creating a synchronized rally across major US indices. The move reflected improved global risk appetite following the diplomatic breakthrough, which analysts described as a significant de-escalation in one of the world’s most volatile regions.

Oil prices declined sharply on the news, providing relief to consumers and businesses while supporting corporate margins across multiple sectors. Lower energy costs are expected to help moderate inflationary pressures, potentially giving central banks more flexibility in future policy decisions.

The session came amid a resilient US economy showing steady growth and solid corporate earnings. Technology companies have been at the forefront of recent market gains, driven by advancements in artificial intelligence and strong demand for digital services. Monday’s performance reinforced confidence in the sector’s long-term growth prospects.

Analyst and Investor Perspectives

Market strategists viewed the rally as a classic risk-on response to geopolitical relief. “The removal of Hormuz-related uncertainty is a clear positive for global growth expectations and corporate profitability,” one chief market strategist noted. “Technology stocks, with their high sensitivity to economic conditions and global trade, stand to benefit disproportionately.”

Some observers cautioned that the sustainability of the gains would depend on the durability of the ceasefire and progress in subsequent nuclear negotiations. However, the immediate market reaction highlighted investors’ willingness to price in a more stable outlook.

Institutional investors appeared to add to positions in growth stocks, with inflows into technology-focused funds reported during the session. Retail participation was also strong, with trading volumes elevated as individual investors reacted to the positive headlines.

Economic and Policy Implications

The peace agreement could have meaningful implications for US monetary policy. Lower energy prices may help keep inflation in check, potentially supporting a more accommodative stance from the Federal Reserve. This environment generally favors growth stocks that dominate the Nasdaq.

Corporate America stands to benefit from reduced uncertainty around international operations and supply chains. Technology firms with significant overseas revenue and exposure to global markets are particularly well-positioned to capitalize on improved conditions.

The rally also reflected confidence in the broader economic outlook. Strong consumer spending, robust labor markets and continued innovation in key sectors provide a solid foundation for equities even as markets navigate periodic volatility.

Historical Perspective

Monday’s gain adds to the Nasdaq’s strong performance in 2026, as the index continues to benefit from technological innovation and corporate adaptability. The current environment contrasts with periods of heightened geopolitical tension earlier in the year, demonstrating markets’ resilience when major risks ease.

Technology-led rallies have been a defining feature of recent market cycles, driven by artificial intelligence, cloud computing and digital transformation trends. The Nasdaq’s ability to reach new highs underscores the sector’s enduring appeal to growth-oriented investors.

Investor Considerations

For individual investors, the session reinforces the importance of maintaining diversified portfolios capable of capturing opportunities across market conditions. Those with exposure to technology and growth stocks likely benefited most from Monday’s advance, while balanced allocations helped mitigate volatility.

Financial advisers recommend focusing on companies with strong competitive advantages, robust balance sheets and exposure to long-term secular trends. While geopolitical developments can drive short-term movements, underlying fundamentals and innovation cycles remain the primary drivers over time.

The Nasdaq’s performance also highlights the interconnected nature of global events and US equities. Investors are encouraged to stay informed about international developments while maintaining a long-term perspective.

Looking Ahead

Attention now shifts to upcoming economic data releases, corporate earnings reports and any further details on the implementation of the Iran agreement. The Federal Reserve’s communications and policy path will also be closely monitored for signals on interest rates.

As markets digest the latest geopolitical breakthrough, the focus remains on whether the positive momentum can be sustained. Strong corporate fundamentals, easing external risks and continued technological progress provide a constructive backdrop, though periodic volatility is likely given the fluid nature of international relations.

Monday’s strong close for the Nasdaq Composite represents a clear vote of confidence in the resilience of the US economy and the potential for reduced global tensions to support innovation and growth. Investors will continue monitoring developments in the Middle East and their implications for energy prices, inflation and broader market sentiment in the weeks ahead.

The session serves as a reminder of markets’ sensitivity to headline news while also showcasing their capacity for rapid recovery when major uncertainties diminish. For now, the Nasdaq’s performance underscores a cautiously optimistic outlook as 2026 continues to unfold.

Give at least a couple of cheers for coercive diplomacy, which is to say diplomacy through bombing. As the Prussian military strategist Carl von Clausewitz told us a couple hundred years ago, “war is the continuation of politics,” or diplomacy, “by other means.”

Last week’s bombing may well have finally pushed Iran and all their internal factions to at least signing a memo of understanding that represents at least the beginning of the end of the war.

President Trump is a master at coercive diplomacy. He’s also a master of psychological warfare diplomacy with his threats to destroy Iran’s infrastructure, such as power, bridges, water, etcetera.  He even kept Kharg island, the apex of Iran’s energy industry, in play as well.

The full text of the memo might come at the end of the week with a formal signing ceremony, as Mr. Trump said today at the G-7 meeting in France. 

Asked by a reporter “when will the text of the MOU be released,” Mr. Trump replied: “I think pretty soon I would say I mean, I want it to be released because it’s a very powerful document. It’s not like the Obama document, which was just a terrible document. This is a very powerful document and I want it to be released. So probably pretty soon, I would say after sometime after Friday, of course, the Strait opens.”

And though we await all of the details, it seems that the president is keeping all his promises to the American people. And, for that matter, to the defeated and surrendering Iranians. They may never acknowledge their surrender, but they are surrendering.

Mr. Trump has said no nuclear weapons for Iran, and that’s in the deal. He has said that the nuclearized enriched uranium must be transferred out of Iran or destroyed altogether. White House sources maintain that’s in the deal.

He has promised a free navigation reopening of the Strait of Hormuz without any Iranian tolls, and that’s in the deal. Here’s what the president said today on Iranian nukes, again from the G-7 in France: “the main thing is that Iran will not have a nuclear weapon. They fully agreed to that with strong policing powers, and they won’t have a nuclear weapon, which is what it was all about, because they probably would have used it if they had it.”

Now Mr. Trump has also said no money for Iran unless and until they completely change their behavior. And there will be strict performance metrics for all these Trumpian red lines. Again, here’s the president earlier today on this point. 

Mr. Trump was asked by a reporter whether the deal will “involve any sanctions relief for Iran?” and if so, “when would that go into effect?”

The president replied: “No it doesn’t. Well, they have to. It’s really a behavioral thing. If they do what they’re supposed to do, that starts taking effect.”

Now all the administration people keep talking about verification. Verify, verify, verify.

I understand in all these areas the devil is in the operational details necessary to execute this memorandum of understanding. All that has to be worked out.

We all know Iran has absolutely no credibility on any of these points. That’s why I don’t think anyone can say the war is yet over. Yet I will amend Ronald Reagan, we never trust Iran. And that’s even more reason why we must verify, verify, and verify.

 I also recognize that Israel, our great ally and comrade in arms, may still have a lot more work to do to defend its freedom.

Let’s step back a moment, though, and recognize that Mr. Trump has crushed Iran militarily through Epic Fury. Mr. Trump and the Treasury secretary, Scott Bessent, have crushed Iran financially through economic fury. And special mention to our United States Navy for their steel-door blockade of Iranian ports.

Lots of former presidents have railed against Iran. But no one has remotely done what Mr. Trump has done to curb the gruesome, diabolical, evil, radical Islamist outlaws that Mr. Trump has done. No one.

And that’s why I believe people of good faith who want to see freedom truly come to the middle east should support the Trumpian memorandum of understanding and turn that into an actual verifiable agreement.

This article was written by

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

NEW YORK — The Russell 2000 index advanced 22.96 points, or 0.79%, to close at 2,943.99 on Monday, as small-cap stocks participated in a broad market rally fueled by the US-Iran peace agreement and the reopening of the Strait of Hormuz, easing geopolitical tensions and boosting investor confidence in domestic economic growth.

The gain extended recent strength in smaller companies, which often outperform in risk-on environments as reduced uncertainty encourages investment in domestically focused businesses less exposed to international supply chain disruptions. The Russell 2000’s performance aligned with advances in the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite, creating a positive day across major US equity benchmarks.

The US-Iran ceasefire announcement, which includes the immediate lifting of the naval blockade and restoration of shipping through the critical oil waterway, removed a major risk premium that had weighed on markets. President Donald Trump’s confirmation of the deal triggered widespread buying, with small-caps particularly benefiting from expectations of lower energy costs and improved consumer and business sentiment.

Small-Caps Benefit from Domestic Focus

Smaller companies, represented by the Russell 2000, tend to derive more revenue from the domestic economy compared to their large-cap counterparts. The prospect of stable or declining energy prices supports sectors such as consumer discretionary, industrials and financials — areas with heavy small-cap representation. Regional banks, homebuilders and retailers were among the session’s stronger performers as investors bet on improved economic conditions.

The index’s advance reflects renewed optimism about the US economy’s resilience. With inflation pressures potentially easing due to lower oil costs, the Federal Reserve may maintain a more accommodative policy stance, which historically favors smaller companies that rely on borrowing for growth and expansion.

Analysts noted that small-caps had lagged large technology names for much of the year but showed signs of catching up as broader economic tailwinds emerged. Monday’s outperformance suggests investors are rotating toward value and cyclical stocks in anticipation of a more balanced market environment.

Broader Market and Economic Context

The Russell 2000’s gain came amid record closes for the Dow and strong advances in other major indices. Technology stocks continued their recent run, while industrial and financial shares posted solid results. The session highlighted improving risk appetite as concerns over prolonged Middle East disruptions faded.

Lower energy costs are expected to provide relief to households and businesses, supporting consumer spending and corporate margins. Small businesses, which form the backbone of the Russell 2000, stand to benefit from reduced input costs and greater economic stability. This environment could encourage hiring, investment and expansion among smaller firms.

The peace agreement also carries positive implications for global trade and supply chains. Reduced shipping risks through the Strait of Hormuz should help stabilize commodity prices and support industries reliant on international commerce, providing indirect benefits to many small-cap companies.

Sector Performance and Key Movers

Financial stocks within the Russell 2000 posted notable gains as lower volatility and improving growth prospects supported lending activity. Regional banks, in particular, benefited from expectations of steady loan demand and reduced credit risk concerns.

Industrial and materials names advanced on improved manufacturing outlook and commodity price stabilization. Consumer discretionary stocks rose as lower fuel costs were seen as supportive of spending on goods and services. Healthcare and technology components within the index also contributed to the advance.

The session’s broad participation indicated healthy market breadth, a positive signal for sustained momentum. Volume was elevated as investors repositioned portfolios in response to the geopolitical breakthrough.

Analyst Views on Small-Cap Outlook

Market strategists described the move as consistent with historical patterns following major risk reductions. Small-caps often thrive when economic uncertainty declines and borrowing conditions remain favorable. With the Federal Reserve likely to monitor incoming data closely, the current environment appears conducive to further small-cap strength.

Some analysts cautioned that while the immediate reaction was positive, implementation details of the Iran agreement and progress on nuclear talks would determine the longevity of the rally. Nevertheless, the consensus leaned constructive, with many highlighting attractive valuations in the small-cap space relative to large-caps.

The Russell 2000’s price-to-earnings ratio remains below that of the S&P 500, offering potential value for investors seeking exposure to domestic growth stories. Dividend-paying small-caps also provide income opportunities in a still uncertain rate environment.

Investment Implications

For individual investors, Monday’s performance underscores the importance of diversification across market capitalizations. While large-cap technology names have driven much of the market’s recent gains, small-caps offer exposure to different economic drivers and potential for outperformance during periods of economic normalization.

Financial advisers recommend evaluating small-cap funds or ETFs for those seeking broader market participation. Focus should remain on companies with strong balance sheets, competitive advantages and exposure to secular growth themes such as domestic manufacturing resurgence and technological adoption.

The Russell 2000’s movement also highlights the interconnected nature of global events and US equities. Investors are encouraged to stay informed about international developments while maintaining a long-term perspective on domestic opportunities.

Looking Ahead

Attention now turns to upcoming economic data releases, including inflation figures, retail sales and manufacturing surveys. Corporate earnings from small-cap companies will provide further insight into the health of the domestic economy and the sustainability of recent gains.

The Federal Reserve’s communications and any policy signals will also influence small-cap performance, particularly regarding borrowing costs and credit availability. Positive developments on the Iran agreement implementation could provide additional support in coming sessions.

As 2026 progresses, the Russell 2000 remains a key barometer for the health of smaller US businesses and overall economic breadth. Monday’s advance suggests improving conditions and investor willingness to embrace risk following a period of geopolitical uncertainty.

The index’s performance contributes to a constructive market backdrop, with reduced external risks allowing focus to shift toward fundamentals. For now, the Russell 2000’s solid gain reflects confidence in America’s domestic economy and the potential for small companies to thrive in a more stable global environment.

Investors will continue monitoring developments in the Middle East alongside domestic indicators to assess the durability of the current positive momentum. The session serves as a reminder of markets’ capacity for swift recovery when major uncertainties diminish, setting an optimistic tone as the week unfolds.