Dow Hits Record High on 'End of War' Agreement; Oil Prices Drop 5%

[Anchor]

U.S. stock markets in New York have all rallied following news of an agreement to end the war. The Dow Jones Industrial Average has reached a new all-time high. Meanwhile, international oil prices fell by 5%, marking their lowest level in three months.

Here is a report from New York correspondent Kim Beom-joo.

[Reporter]

In the first trading session in New York since the agreement between the U.S. and Iran was reached, all three major indices closed higher.

The Dow Jones Industrial Average rose 0.9% to set a new record high, while the tech-heavy Nasdaq surged 3.1%, and the S&P 500, which tracks 500 major companies, climbed 1.7%.

Brent crude, the international benchmark for oil prices, dropped 5% to $80 per barrel, hitting a three-month low. As a result, shares of airline and travel companies saw a sharp increase.

Furthermore, expectations that inflation is cooling and interest rates may stabilize boosted artificial intelligence and semiconductor-related stocks, with Micron shares jumping 10.8%.

SpaceX stock, which rose 19% on its first day of trading last Friday, surged by another 19% today (June 16).

However, warnings are being issued that because the situation remains precarious, the opposite could happen at any time if these expectations are not met.

[Kevin Mahn, President of Hennion & Walsh Asset Management: The market rallied on the belief that an agreement has been reached and the Strait of Hormuz has been opened. If these two things go wrong, we could see the opposite of what we are seeing today.]

Gold prices, which had fallen more than 20% over the past two months, also rose 2.5% on expectations of interest rate stability, reaching a one-month high.

(Video reporting: Lee Hee-hoon, Video editing: Park Ji-in)
※ Please note: This article was translated by AI and may contain errors.