NEW YORK — Wall Street surged Thursday as a dramatic de-escalation in the Middle East lifted investor sentiment, sending the Dow Jones Industrial Average above the 50,800 level for the first time in weeks. The relief rally was triggered by President Donald Trump’s announcement that planned military strikes against Iran had been canceled, with a diplomatic deal now expected to be signed in Europe this weekend.
Equities Rally on Iran De-escalation
The S&P 500 gained 126.86 points, or 1.75%, to close at 7,393.85, while the Nasdaq Composite surged 637.78 points, or 2.53%, to 25,801.47 — the sharpest single-session jump for the tech-heavy index in nearly two months. The Dow Jones Industrial Average rose 928.72 points, or 1.84%, to finish at 50,847.50, as rate-sensitive financials and energy shares led advancing sectors across the board.
The catalyst was unmistakable: Trump told reporters at the White House that the United States had agreed to call off strikes, and that Vice President JD Vance would attend a formal signing ceremony for the Iran nuclear framework expected to take place in Vienna on Saturday. The announcement brought immediate relief to markets that had priced in a 30% probability of military action heading into the week.
Oil Retreats as Supply Disruption Fears Fade
Brent crude futures fell $2.72, or 2.9%, to settle at $90.38 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped $2.32, or 2.6%, to $87.71 per barrel. Both benchmarks had touched 18-month highs earlier in the week as traders braced for potential disruptions to Gulf shipping lanes. The retreat in energy prices helped ease inflation expectations, pushing the 10-year Treasury yield down to 4.38% from 4.52% at the start of the week.
“The market was pricing in a risk premium that simply evaporated the moment the strike option went away,” said Elena Marchetti, chief rates strategist at Meridian Capital. “The immediate beneficiaries were growth stocks and high-duration assets that had been under the most pressure from geopolitical uncertainty.”
Gold Rises, Dollar Softens
Spot gold jumped 2% to $4,153.71 per ounce, recovering most of its early-week losses as safe-haven demand ebbed. The U.S. dollar index slipped 0.4%, falling to 104.2, as capital rotated out of defensive positions and back into equities. The dollar slipped 0.17% against the Japanese yen, to 160.27.
SpaceX IPO: Markets Await Friday Debut
All eyes now shift to Friday’s market open, when Elon Musk’s SpaceX begins trading on the Nasdaq under the ticker symbol “SPX.” The company priced its IPO at $135 per share, raising approximately $75 billion in the largest public listing in U.S. history. The 555.6 million-share offering values SpaceX at roughly $250 billion pre-money, placing it seventh among all U.S.-listed companies by market capitalization — ahead of ExxonMobil and just behind Berkshire Hathaway.
Institutional demand for the listing was reported to be more than eight times oversubscribed, though retail investors received a relatively modest allocation of under 20% of the total offering, according to people familiar with the matter. Analysts expect significant first-day volatility given the company’s lack of profitability and the symbolic weight of the Musk brand on Wall Street.
Apple’s Siri Delay Weighs on Nasdaq
The Nasdaq’s rally, while strong, was somewhat capped by a 2.1% decline in Apple shares following a report that the tech giant has delayed the launch of its next-generation AI-powered Siri assistant until early 2027 — the second postponement in as many months. The delay has reignited investor concerns about Apple’s competitive positioning against Microsoft and Alphabet in the fast-growing artificial intelligence market, with analysts questioning whether the company can close the gap before rivals embed AI deeper into enterprise workflows.
Anthropic Announces $150M AI Fellowship Program
In the broader AI landscape, Anthropic announced its “Claude Corps” initiative — a $150 million fellowship program that will place 1,000 early-career professionals at nonprofits across the United States for one-year stints to help those organizations integrate artificial intelligence into their operations. President Daniela Amodei said the program reflects Anthropic’s belief that the benefits of AI should be distributed broadly, not concentrated in well-capitalized tech firms and financial institutions.
Outlook: Focus Shifts to Earnings and Treasury Auctions
With geopolitical risk priced out of markets for now, traders expect the coming weeks to be driven by corporate earnings season and a slate of Treasury debt auctions. Adobe, Oracle, and Costco are among the high-profile names reporting next week. The consensus on Wall Street is that the market’s near-term direction will hinge on whether companies can demonstrate that AI-driven revenue growth is finally translating into bottom-line earnings — and whether the SpaceX debut can sustain its valuation without disappointing retail investors.
Nathan Brooks
Nathan Brooks is an economy correspondent covering US markets and fiscal policy.