Nasdaq Surges 3% on US-Iran Deal as Tech Rally Outpaces Lagging Dow

US equities extended a risk-on rally on Monday after reports of a surprise interim US-Iran peace agreement to reopen the Strait of Hormuz. The Nasdaq Composite jumped 3% for its second-best session of 2026 while the Nasdaq-100 rose 2.5% at the open and reclaimed its 20-day moving average. Gains remained concentrated in mega-cap tech names as the S&P 500 advanced 1.8% but the Dow lagged with a 1.2% gain and the equal-weight S&P 500 ETF fell 0.7%. Volatility stayed elevated with average daily moves near 2% and the formal signing of the deal still pending until 19 June.