The S&P 500 index hits a record high as falling oil prices boost market optimism.

Market hopes for an agreement to restore passage through the Strait of Hormuz are rising, driving U.S. stocks higher in early trading, bolstering bond prices, and causing oil prices to drop. Meanwhile, a series of strong corporate earnings reports has further boosted optimism on Wall Street. As of 9:47 AM New York time, the S&P 500 index rose 0.6%, surpassing its peak on June 2. The Nasdaq 100 index increased by 1.9%, and the Dow Jones Industrial Average was up by 0.9%. Market optimism anticipates that mediators will facilitate a deal and avert large-scale airstrikes by the U.S. on Iran, with Brent crude oil falling below $80 per barrel. Palantir Technologies Inc. previously issued a robust earnings outlook, alleviating investor concerns over demand for artificial intelligence. Traders are currently awaiting earnings reports from SpaceX and AMD, which will be released later. Tony Miano from Wells Fargo Investment Institute stated, "The market is reacting to the possibility of the Strait of Hormuz reopening. The reopening of the strait would help restore normal global oil supply and alleviate short-term energy price pressures. The decline in oil prices can also ease inflation concerns." As of the close on Monday, of the 322 S&P 500 companies that have reported earnings this season, 86% exceeded analysts' expectations for earnings per share, while 10% fell short; 68% reported revenue above expectations, and 16% reported below expectations. In individual stock news, Amazon's share price dropped after Jeff Bezos reported selling $4.07 billion worth of Amazon stock.