After Trump’s Announcement, Wall Street Closes Higher

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After Trump’s Announcement, Wall Street Closes Higher C14 Desk, 10 minutes ago 0 0

US President Donald Trump said that an agreement with Iran is taking shape and claimed that “Khamenei approved the deal” • Chip stocks led the gains, oil fell by about 3%, and investors are preparing for SpaceX’s giant IPO

Wall Street ended today’s trading session, Thursday, with sharp gains, following a dramatic turn in the geopolitical arena. US President Donald Trump announced that he had canceled the planned American strike against Iran, and that the United States and Tehran are in the final stages of an agreement that would prevent Iran from obtaining nuclear weapons.

The Dow Jones Industrial Average jumped 929.6 points, up 1.86%, and the S&P 500 rose 1.75%. The Nasdaq led the gains with a notable 2.54% surge, reflecting market optimism. The rally began after Trump wrote on Truth Social about canceling the planned strikes. Later, the president told reporters at the White House that “we have a deal under which Iran will never have nuclear weapons,” adding that signing is expected very soon. His remarks eased fears of a major military escalation in the Middle East, after he had earlier threatened that the United States would “strike Iran with great force tonight.”

Wall Street Street in New York | Photo: Shutterstock

Against the backdrop of lower tensions, oil prices erased part of their recent gains. US crude oil (WTI) fell by about 3% to around $86 a barrel, while Brent crude weakened by about 3% and traded at around $89 a barrel. Chip stocks stood out in trading, leading a sharp recovery after days of weakness. The iShares Semiconductor ETF jumped by about 6%, as AMD, Micron and Intel posted steep gains. Intel stood out in particular after Bank of America raised its recommendation on the stock from “underperform” to “buy,” while lifting its price target, giving the entire sector a boost.

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Macro data also contributed to the positive mood. The Producer Price Index (PPI) rose 1.1% in May, above analysts’ forecasts. However, core inflation, which excludes food and energy, came in at just 0.4%, below expectations, a reading that helped calm concerns about broader inflationary pressures. At the same time, investors are focused on SpaceX’s giant IPO expected tomorrow. Elon Musk’s company is expected to go public at a valuation of about $1.8 trillion, the largest IPO in history. On the other hand, Oracle fell 11% after announcing plans to raise an additional $20 billion.

Elon Musk | Photo: Shutterstock

At the end of the trading day, investors chose to focus on the easing of tensions with Iran, the recovery in chip stocks and anticipation of SpaceX’s giant IPO. These factors turned the negative sentiment that had characterized the market in recent days into a day of sharp gains across the major Wall Street indexes, and pointed to renewed optimism among traders.

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