Nasdaq, S&P 500 Surge as Trump Cancels Iran Strikes and Says Deal Is 'In Final Shape'

Wall Street roared higher on Thursday after President Donald Trump signaled that a deal with Iran is close, defusing fears of a broader Middle East conflict that had rattled markets earlier in the week. The S&P 500 gained 1.75% to close at 7,394.30, while the tech-heavy Nasdaq Composite surged 2.54% to 25,809.66. The Dow Jones Industrial Average added 929.97 points, or 1.86%, finishing at 50,848.75. The rally marked a sharp reversal from June 10, when escalating U.S.-Iran tensions had pressured equities and lifted oil. The catalyst came from Trump himself. In a Truth Social post, the president said he had "cancelled the scheduled strikes and bombings against Iran this evening," adding that a naval blockade would remain in force "until this Transaction is finalized." Speaking later in the Oval Office, Trump told reporters, "We have a deal that Iran will never have a nuclear weapon," noting that "the documents are in pretty final shape" and a signing should happen "pretty quickly." Semiconductor stocks, among the hardest hit during the risk-off stretch, led the rebound. Intel (INTC) jumped roughly 5.5%, aided by a double upgrade to "buy" from "underperform" at Bank of America. Chip-equipment makers Applied Materials (AMAT) and Lam Research (LRCX) each climbed about 4.6%, as investors rotated back into growth and cyclical names on easing geopolitical risk. The energy picture was more nuanced. Oil had spiked earlier in the week on supply-disruption fears, but the de-escalation signal sent crude lower, with benchmarks slipping more than 3% as traders unwound war-risk premiums. Trump reinforced the move, predicting oil prices would fall "like a rock" once hostilities end. Brent and West Texas Intermediate both pulled back from their conflict-driven highs. For markets, the episode underscored how heavily sentiment has been tethered to headlines out of Washington and Tehran. The same indices that sold off on strike fears reversed almost entirely once the threat of military action receded, a reminder that geopolitical risk premiums can evaporate as quickly as they appear. Risks remain. The deal is not yet signed, the naval blockade is still in place, and a breakdown in negotiations could swiftly reignite volatility and push crude back up. Investors will be watching for confirmation of a signing date and concrete terms before treating the truce as durable. For now, though, the path of least resistance is higher. With a potential resolution to the Iran standoff in view and falling oil easing inflation worries, traders are leaning back into risk assets, sending megacap tech and chipmakers to the front of the rally.