The Dow Jones Industrial Average set an official milestone on Friday, closing above 40,000 for the first time ever. Stocks are mostly flat this morning, though, along with Treasuries, crude oil, and the dollar. Gold and silver are up again after a big gain for the latter on Friday.

The stock market rally is so powerful, it just managed to steamroll one of Wall Street’s biggest bears. Morgan Stanley strategist Michael Wilson has been forecasting trouble for stocks since 2023, but he just capitulated and raised his S&P 500 target all the way to 5,400 from 4,500. For what it’s worth, he now says investors should take a “barbell” approach to the markets – pairing riskier cyclical stocks with defensive names in the consumer staples and utilities sectors.

Data by YCharts

The president of Iran, Ebrahim Raisi, died in a helicopter crash along with the country’s foreign minister on Sunday. No foul play is suspected, with Iran blaming a “technical failure” for the downing. First vice president Mohammed Mokhber will assume Raisi’s role, and tensions between Iran, the US, and Israel will likely remain elevated.

Finally, the Red Lobster seafood restaurant chain filed for bankruptcy on Sunday. Expensive leases and losses associated with its “Ultimate Endless Shrimp” offers helped seal the company’s fate. Lenders will take control of the company and keep it operating with $100 million in financing. It has more than 550 locations in the US and Canada and employs around 36,000 workers.