Wall Street's major indexes posted strong gains on Thursday (Friday AEST) after United States President Donald Trump said planned military strikes against Iran had been cancelled, easing geopolitical concerns and boosting investor sentiment ahead of the highly anticipated market debut of SpaceX.
The Dow Jones Industrial Average climbed 930.0 points, or 1.9%, to 50,848.8. The S&P 500 advanced 127.3 points, or 1.8%, to 7,394.3, while the Nasdaq Composite surged 640.2 points, or 2.5%, to 25,809.7.
According to CNBC, Trump told reporters in the Oval Office that “we have a deal that Iran will never have a nuclear weapon”.
He continued, “We have a signing soon, and the documents are in pretty final shape. It should be done and it should be done pretty quickly.”
Earlier in the session, equities gained momentum after Trump wrote on Truth Social that he had “cancelled the scheduled strikes and bombings against Iran this evening”.
“The Naval Blockade will remain in full force and effect until this Transaction is finalised — Time and place of the signing to be announced shortly,” he added.
The comments came just hours before the anticipated military action.
Trump later said at the White House that the United States and Iran could sign a peace agreement as soon as this weekend, potentially reopening shipping routes through the Strait of Hormuz.
Technology stocks led the rally, with semiconductor companies posting significant gains. Micron Technology jumped 11.7%, Advanced Micro Devices gained 8%, and Intel rose 9.3%.
The PHLX Semiconductor Index surged 7.9%, marking its strongest one-day percentage gain since April 2025.
The rebound followed a difficult session on Wednesday when the S&P 500 technology sector officially entered correction territory.
Investors were also focused on the upcoming debut of SpaceX shares on the Nasdaq on Friday.
The Elon Musk-led rocket and spacecraft manufacturer priced its initial public offering at US$135 per share on Thursday, making it the largest IPO ever completed in the United States and valuing the company among the world's most valuable corporations.
The offering raised a record $75 billion through the sale of 555.56 million shares, giving SpaceX a market valuation of approximately $1.77 trillion.
Not all technology names participated in the rally. Oracle fell 8.5% after the software company outlined fiscal 2027 capital expenditure plans that exceeded Wall Street expectations, raising concerns about future spending requirements.
Economic data released during the session highlighted ongoing inflation pressures.
The U.S. Bureau of Labor Statistics (BLS) reported that the producer price index (PPI) rose 1.1% in May, exceeding expectations for a 0.7% increase.
Core producer inflation, which excludes food and energy prices, increased 0.4%, slightly below the 0.5% expected.
On the bond markets, yields moved lower despite the stronger-than-expected inflation data. The yield on the benchmark 10-year U.S. Treasury fell 2.1% to 4.459%, while the two-year Treasury yield declined 2% to 4.062%.
