Key facts
- Wall Street indexes surged Thursday after President Trump canceled planned strikes against Iran.
- Oil prices dropped sharply, reversing earlier gains driven by fears of conflict.
- The Dow Jones Industrial Average rose 928.72 points, or 1.84%.
- The Nasdaq Composite gained 637.78 points, or 2.53%.
- SpaceX priced its IPO at $135 per share, raising a record $75 billion.
- US producer prices increased more than expected in May.
Wall Street indexes surged on Thursday, extending gains after U.S. President Donald Trump announced he had canceled planned strikes against Iran, easing geopolitical tensions and oil prices. The market also benefited from anticipation surrounding the initial public offering of Elon Musk's SpaceX.
On Wednesday, major Wall Street indexes had fallen more than 1%, with the S&P 500 Technology Index confirming a correction. "Our technical indicators are looking relatively oversold here," said Robert Phipps, a director at Per Stirling Capital Management. "Just as we had gone up too far, too fast, we came down too far, too fast."
According to preliminary data, the S&P 500 gained 126.86 points, or 1.75%, to end at 7,393.85. The Nasdaq Composite gained 637.78 points, or 2.53%, to 25,801.47. The Dow Jones Industrial Average rose 928.72 points, or 1.84%, to 50,847.50.
SpaceX priced its IPO at $135 per share, raising a record $75 billion on the sale of 555.56 million shares, valuing the company at $1.77 trillion. SpaceX shares are expected to begin trading on Friday.
Despite inflation concerns, with U.S. producer prices increasing more than expected in May, leading to the largest annual gain in over three years, and a marginal increase in weekly unemployment claims, the market showed resilience. The Federal Reserve is widely expected to hold interest rates steady at its policy meeting next week.