US stocks roared back Thursday as President Trump called off impending strikes on Iran – allowing chip stocks to rebound following intense declines over the past few weeks.
The Dow Jones Industrial Average soared 929 points, or 1.9%, while the S&P 500 and Nasdaq rose 1.8% and 2.5%, respectively.
“Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening,” Trump wrote in a Truth Social post.
He added that discussions have been “approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others.”
The president on Thursday told The Post that the long-awaited agreement to reopen the Strait of Hormuz and begin nuclear negotiations with Tehran is “pretty much all wrapped up.”
Brent crude oil prices fell 2.9% to $90.38 a barrel, while West Texas Intermediate dipped 2.6% to $87.71 a barrel.
National average gasoline prices, which lag oil prices by a few weeks, hit $4.13 a gallon on Thursday, according to AAA – down from a week ago but still nearly 40% higher than pre-war prices.
Investors were on edge earlier in the day after the US and Iran exchanged strikes for the second consecutive day on Wednesday, and Trump on Thursday warned that the US would attack Iran “VERY HARD TONIGHT” without a peace deal.
The president also said the US would soon take control of Kharg Island, a major energy hub for 90% of Iranian crude oil experts, and “other oil infrastructure points.”
The Bureau of Labor Statistics also released the Producer Price Index Thursday morning, showing wholesale inflation in May hit its hottest level since November 2022 – dashing hopes for interest-rate cuts.
Markets breathed a sigh of relief with news of the cancelled airstrikes, allowing chip and tech stocks to regain some losses from the past few weeks of declines.
Micron Technology, Advanced Micro Devices and Intel rose 12%, 8% and 9.3%, respectively.
Shares in Apple and Nvidia jumped 1.4% and 2.1%, respectively.
The iShares Semiconductor ETF gained 6.1%. The chip ETF had plummeted 10% Friday.
Investors had pulled back on crypto, chip and tech investments in preparation for a series of heavyweight AI IPOs coming up – starting with SpaceX’s IPO on Friday.
The rocket-launch firm’s public debut is eyeing a $1.75 trillion valuation, which would make founder Elon Musk the world’s first trillionaire. He is currently the richest person in the world with a $788.9 billion net worth, according to Forbes.
Oracle, on the other hand, did not enjoy the tech boost on Thursday, as its shares sank 8.5%.
Though the software company reported an earnings beat on the top and bottom line, it spooked investors with plans to spend an additional $20 billion – while reporting negative free cash flow for the year.
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