All three major US stock indices hit fresh all-time highs on May 28, with investors betting heavily that a US-Iran deal is about to cross the finish line. The S&P 500 closed at 7,563.33, up 0.6%. The Nasdaq Composite did even better, climbing 0.9% to land at 26,917.47. The Dow Jones Industrial Average rose to 50,669.77.
Bitcoin traded below $73,000, and Ethereum along with various altcoins drifted sideways or lower. The divergence between traditional equities and digital assets tells a story worth paying attention to.
The deal driving the rally
The catalyst behind the equity surge was a reported tentative memorandum of understanding between the US and Iran. The framework reportedly includes a 60-day extension of a ceasefire and the reopening of access to the Strait of Hormuz, one of the most strategically critical chokepoints for global oil shipments.
Roughly 20% of the world’s petroleum passes through that narrow waterway.
