Iran deal could expand market gains, with consumer shares, small caps seen benefiting

A deal to end the US-Iran conflict could broaden the global market rally beyond tech/AI into consumer discretionary, small-caps, and ex-US markets, as lower oil prices ease inflation pressure and boost consumer spending. US crude hit a three-month low while the S&P 500 rose 1.7%, coming within 1% of its all-time high. Strategists from JPMorgan, Morgan Stanley, BCA Research, and Edward Jones expect cyclical sectors and non-US equities to outperform in the second half on easing geopolitical risk.