Wall Street staged a strong rebound on Thursday, with all three major US indices recording their biggest one-day gains since April after President Donald Trump said planned military strikes against Iran had been cancelled.
The rally gathered momentum after Trump indicated that the US and Iran could reach a peace agreement as early as this weekend, potentially reopening shipping routes through the Strait of Hormuz and easing concerns over a wider regional conflict.
The Dow Jones Industrial Average surged 929.97 points, or 1.86%, to 50,848.75. The S&P 500 climbed 127.31 points, or 1.75%, to 7,394.30, while the Nasdaq Composite jumped 640.16 points, or 2.54%, to 25,809.66.
Technology and semiconductor counters led the advance. The Philadelphia Semiconductor Index soared 7.9%, marking its strongest daily performance since April 2025 and helping lift the broader market after a sharp sell-off a day earlier.
The rebound came after investors reacted positively to signs that geopolitical tensions in the Middle East may ease, reducing fears over supply disruptions and inflationary pressures linked to surging energy prices.
Market attention is also turning to SpaceX, which is expected to begin trading on the Nasdaq on Friday following its record-breaking US$75 billion initial public offering. The listing values Elon Musk’s space and satellite company at US$1.77 trillion, making it one of the world’s most valuable companies.
Investor sentiment was also shaped by fresh economic data. US producer prices rose more than expected in May, recording the largest annual increase in more than three years, while jobless claims edged slightly higher last week.
Despite the inflation data, investors largely expect the Federal Reserve to keep interest rates unchanged at next week’s policy meeting, although markets are still pricing in at least one 25-basis-point rate increase by year-end.
Not all stocks participated in the rally. Oracle tumbled 8.5% after unveiling fiscal 2027 capital expenditure plans that exceeded Wall Street expectations, sparking concerns over spending and future profitability.
Market breadth remained positive, with advancing stocks outnumbering decliners by nearly three-to-one on both the New York Stock Exchange and Nasdaq. Trading volume reached 21.41 billion shares, above the recent 20-day average of 20.7 billion shares.
Reuters
