The Dow Jones soared to new all-time highs on Monday as the other major averages traded higher across the board following news of a preliminary peace deal between the U.S. and Iran. Dominic Chu and Kelly Evans break down the market action with Charles Schwab’s Liz Ann Sonders, Neuberger’s Jeff Blazek, and Bank of America’s Savita Subramanian. Meanwhile, Micron added to its recent rally with a near double-digit gain after TD Cowen raised its price target from $660 to $1,500, and the analyst behind that note joined the anchors to explain his methodology Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Markets rally after Pres. Trump signs Iran deal memorandum 6/15/26

Power Lunch

# Full Transcript

**Podcast:** Power Lunch

## Transcript

And markets are definitely in rally mode today. Welcome to Power Lunch. Alongside Dominic Chu, I'm Kelly Evans. And we're higher across the board on a potential deal to end the war in Iran. We'll have full markets coverage of this story today with Savita Subramanian, head of U.S. equity strategy at B of A, Lizanne Saunders, the chief investment strategist at Charles Schwab, and Jeff Blazek, the co-CIO of multi-asset strategy at Newburger.

All right, plus one stock that's rallying today bigly is Micron, up more than 800 percent over the course of the past year, up another 10 percent today. TD Cowan's raising its target price to $1,500 per share, betting that AI's demand for more memory is just getting started. We got the analysts behind that big call coming up, Kelly.

But let's begin with the record rally, the Dow touching a new intraday high after President Trump announced a preliminary peace agreement between the U.S. and Iran. As a result, Treasury yields are also sliding about 446 at last check there for the 10-year. Ahead of the big test for the markets, Kevin Warsh's first Fed meeting as chairman. Joining us now to discuss is Jeff Blazek. As we mentioned, he's the co-CIO of multi-asset at Newburger and Lizanne Saunders over at Schwab. Jeff, I'll start with you. You're right here. Welcome. Thank you.

And the joke is going around, but it feels so true. Whatever the geopolitics is, it seems like the memory trade is ripping. Whatever, you know, tie this all together for us in a way that makes sense. Does it have anything to do with this deal being potentially reached today? Is it because of how well the SpaceX IPO went? Is it none of that? Well, this deal being reached clears the stage. And now we can focus on this massive AI infrastructure build out. And we do think there's more legs to the infrastructure to come.

So I would say that the step function up we're seeing in earnings justifies these massive upward moves we're seeing in the prices. And so we think there's a lot more to come. All right. A lot more to come. We're at 75.60 for the S&P 500 right now. So what does that mean? Well, the S&P 500 trades at 21 times earnings. That is about as affordable as it's been since COVID. And it's because the E and the P-E ratio is growing faster than the price.

And so until we see any kind of deceleration in earnings, we're at a 25 to 30 percent run rate right now. We don't think this is going to stop anytime soon. Lizanne, I want to toss this over to you as well, because one of the main reasons why we are seeing that move higher in the markets without any kind of multiple expansion is because earnings growth has been as robust as it has been.

Is there anything that you can see from your standpoint, knowing what we know right now, that is going to be a hiccup or a speed bump for that earnings growth? Or can we continue to see that? And maybe even with possible Fed rate cuts now that the ...

Markets rally after Pres. Trump signs Iran deal memorandum 6/15/26

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Markets rally after Pres. Trump signs Iran deal memorandum 6/15/26

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.