U.S. stocks rallied sharply Thursday as investors embraced signs of de-escalation in the Middle East following President Donald Trump's announcement that planned military strikes against Iran had been canceled. The Dow Jones Industrial Average jumped 929.60 points, or 1.86%, to 50,848.4, while the S&P 500 gained 127.08 points, or 1.75%, to 7,394.07, and the Nasdaq Composite surged 640.16 points, or 2.54%, to 25,809.7.
The rally accelerated during the afternoon after Trump posted on Truth Social that he had canceled scheduled strikes and bombings against Iran after discussions reached the highest levels of Iranian leadership and received approval from participating regional governments.
"Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening," Trump wrote.
The announcement represented a dramatic reversal from earlier market fears that the United States could be preparing a major military escalation. Investors responded by aggressively rotating back into risk assets while reducing defensive positions.
Energy markets reflected the shift immediately. Brent crude oil fell $4.06, or 4.36%, to $89.04 per barrel as traders reassessed the probability of supply disruptions across the Persian Gulf. Meanwhile, the CBOE Volatility Index dropped 11.78% to 19.60, signaling a sharp decline in demand for downside protection.
Interestingly, gold continued to climb despite the broad risk-on move. August gold futures rose $96.00, or 2.32%, to $4,229.30, suggesting some investors remain cautious about the durability of the Iran War détente and continue seeking portfolio hedges.
Adding to bullish sentiment was growing anticipation surrounding the upcoming SpaceX IPO. Wall Street analysts expect the offering to become one of the most consequential public listings in market history. AInvest reports that SpaceX's valuation has climbed above $1.75 trillion and could exceed the combined valuation of the entire S&P 500 aerospace sector. Investors are increasingly viewing the IPO as a potential catalyst for renewed enthusiasm across technology, aerospace, and innovation-focused equities.
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Friday promises historic moves on Wall Street with the SpaceX launch as investors look for confirmation that the Iran War may be winding down.