Markets Rally as Strait of Hormuz Agreement Eases Global Tensions

United Airlines and Delta Air Lines led the charge in early trading, climbing 4.5% and 4% respectively as lower fuel costs promised immediate relief for margins. Conversely, Exxon Mobil and Chevron struggled, each shedding 3% as the risk premium evaporated from global energy markets. Investors are further buoyed by signals that the Federal Reserve may soon pause its aggressive interest rate hikes, citing a cooling inflationary environment.

Individual equities reflected this broader volatility. SpaceX saw its shares climb following a successful public offering, while the semiconductor sector posted broad gains. The deal-making landscape took a hit elsewhere, however, as Fox shares cratered by 13.1% after announcing a $22 billion acquisition of Roku. Despite this isolated slide, the CBOE Volatility Index continues to decline, signaling a return of confidence to the broader exchange.