Dow hits new closing high; oil falls after U.S.-Iran deal
Dow Jones Industrial Average surged to a fresh intraday record Monday after news of a U.S.-Iran deal pulled buyers back into the market, easing concerns about a drawn-out energy shock. The Dow, which tracks 30 large U.S. blue chips and is weighted by stock price, moves most when higher-priced names swing. Google Finance listed the Dow at 51,775.82, up 573.56 points or 1.12% on the day, after peaking at 51,945.89. Lower oil prices are bringing down inflation, trimming costs for fuel-heavy companies, and making it less likely the Fed will raise interest rates. That usually lifts stocks as investors bet on better profits or cheaper loans. Shares tend to drop when rates or costs go up, or when there’s more uncertainty. After the deal, Reuters said U.S. crude futures were down about 5%, helping airline and cruise stocks but weighing on energy names. “Markets are higher on a classic relief rally,” said Gene Goldman, chief investment officer at Cetera Investment Management, to Reuters.
