US stock market today: Wall Street rebounds as oil slides after US-Iran deal; S&P 500, Nasdaq rise over 1%

US equities staged a recovery session as S&P 500 and Nasdaq both advanced over 1%, reversing prior-day weakness. The rally reflects a classic risk-on rotation driven by two macro tailwinds: declining crude prices and compressed Treasury yields, both signaling reduced inflation expectations and lower discount rates for equities.

The reported US-Iran deal development appears instrumental in crude's decline, reducing geopolitical premium and easing energy supply anxiety. Lower oil prices typically boost consumption-sensitive sectors and reduce input costs across industrials and transport, benefiting airlines like AAL through fuel-cost relief. The yield compression further supports growth equities disproportionately, explaining the outsized Nasdaq performance.

Energy stocks faced headwinds as commodity prices retreated, creating a sector rotation away from cyclicals into defensives and technology. This realignment suggests investors view the macro environment as less inflationary and more accommodative—a structural shift that favors multiple expansion in high-growth names over value plays in commodities.

Sector implication: Technology and discretionary sectors benefit from yield relief and optimized discount rates, while energy and materials face cyclical headwinds. The move signals market repricing toward a softer inflation regime and potential easing bias.