Wall Street Rallies as Iran Peace Deal Signals Energy Relief

NEW YORK — Wall Street surged on Thursday as President Donald Trump canceled planned military strikes against Iran, signaling a potential end to more than three months of conflict that has destabilized global energy markets and rattled investor confidence across the world.

The Dow Jones Industrial Average roared 928.72 points, or 1.84%, to close at 50,847.50, its strongest single-day gain in weeks. The S&P 500 climbed 126.86 points, or 1.75%, to finish at 7,393.85, while the Nasdaq Composite surged 637.78 points, or 2.53%, to end at 25,801.47. The moves reflected a broad shift in sentiment as traders reassessed the risk premium that has weighed on equities since the Iran conflict escalated in March.

Traders cited Trump’s announcement that Vice President JD Vance will attend a U.S.-Iran deal signing in Europe this weekend as the catalyst for the rally. Brent crude futures fell $2.72, or 2.9%, to settle at $90.38 a barrel, while U.S. West Texas Intermediate dropped $2.32 to $87.71, as investors priced in a return to normal crude flow from the Persian Gulf.

SpaceX IPO Anchors Tech Optimism

The rally also drew strength from anticipation around SpaceX’s market debut on Friday. The company, controlled by billionaire entrepreneur Elon Musk, will begin trading on the Nasdaq under the ticker SPACEX after pricing its IPO at $135 per share. The offering, which valued the aerospace and satellite company at roughly $250 billion, drew strong institutional demand and is expected to rank among the largest U.S. listings in years.

Gold prices climbed 2% as the broader mood shifted from geopolitical risk to growth optimism. The dollar index dipped against a basket of major currencies as investors moved away from defensive positioning. Treasury yields rose as the outlook for economic stability improved.

Honeywell Signals M&A Ambitions

In corporate news, Honeywell said Thursday it is targeting acquisitions valued at $2 billion to $4 billion, with a focus on its industrial automation segment. President Peter Lau told investors at the company’s analyst day in New York that the business operates in a roughly $35 billion addressable market and remains “way underpenetrated” in solutions and software.

The market’s reaction underscored how quickly investor sentiment can shift when geopolitical tail risks recede. For months, energy prices and military tensions had pressured consumer spending forecasts and corporate earnings projections. The prospect of normalized oil supplies lifted sectors ranging from airlines to industrials, with the S&P 500 energy index falling for the first time in six sessions.

A Fragile Ceasefire

Analysts cautioned that the deal remains unsigned, and the weekend signing represents only the first step in a process that could face complications. Sanctions relief for Iran has historically been a contentious issue in U.S. politics, and lawmakers from both parties have signaled skepticism about permanent concessions without verified compliance on nuclear activities. Still, the immediate market response treated the announcement as a meaningful reduction in tail risk.

“This is the clearest signal yet that the worst-case scenario is off the table,” said one senior equity strategist at a New York investment firm who spoke on background. “We’ve had oil at a premium for months, and any normalization is a direct boost to consumer purchasing power and corporate margins.”

The MSCI global equities index rose 10.26 points, or 0.94%, to 1,097.24. European markets closed higher, with the Stoxx Europe 600 up 1.2%, as investors anticipated improved trade flows through the Gulf region.

Looking Ahead

The week’s gains have put major indexes within striking distance of record levels, with the S&P 500 less than 1% below its all-time high set earlier this year. Investors will watch for confirmation of the weekend signing and any details on the terms of the agreement. SpaceX’s trading debut on Friday will also draw significant attention, with analysts divided on whether the valuation fully reflects the company’s growth trajectory.