Major U.S. stock indices posted substantial gains on Thursday following remarks from former President Donald Trump regarding a potential agreement with Iran.
The Dow Jones Industrial Average surged by approximately 930 points, or 1.86%, to close at 50,848.75.
The Nasdaq Composite jumped 640.16 points, or 2.54%, finishing at 25,809.66, while the S&P 500 index climbed 127.30 points, or 1.75%, ending at 7,394.29.
In individual stock movements, shares of Intel (INTC) and Super Micro Computer (SMCI) each advanced more than 9%.
NVIDIA (NVDA) shares gained 2%, and Tesla (TSLA) shares rose over 4%.
The Nasdaq Golden Dragon China Index closed up 0.24%, though shares of Alibaba (BABA) declined more than 1%.
Key Market Drivers
Former President Trump stated on social media that he had canceled a planned military strike against Iran and indicated the U.S. is nearing the signing of an agreement with the country.
Market expectations for a Federal Reserve interest rate hike have been pushed from December of this year to January of next year, with traders no longer fully pricing in a hike for this year.
Global and Commodity Markets Overview
In European trading, Germany's DAX 30 index rose 9.82 points to 24,228.14, and the UK's FTSE 100 index gained 51.45 points to 10,306.26.
France's CAC 40 index added 38.97 points to 8,200.80.
The U.S. Dollar Index, which measures the dollar against a basket of major currencies, declined 0.1% to settle at 99.852.
In the cryptocurrency market, Bitcoin rose over 3.5% to $63,557.99, and Ethereum gained over 3.8% to $1,678.78.
Oil prices retreated, with the July contract for West Texas Intermediate crude falling $2.32, or 2.58%, to settle at $87.71 per barrel.
The August Brent crude contract dropped $2.72, or 2.92%, to close at $90.38 per barrel.
Spot gold rallied 3.46% to trade at $4,211.48 per ounce, moving back above the $4,200 level.
Spot silver was at $67.375.
Other Economic and Corporate Developments
CME Group announced plans to offer 24/7 trading for new, smaller-sized crude oil and gold contracts pending regulatory review.
Federal Reserve data showed the size of the U.S. commercial paper market expanded in the latest week.
U.S. wholesale inflation, as measured by the Producer Price Index, rose 1.1% in May, exceeding expectations and marking the largest consecutive increase since 2022.
Sources indicated that following its initial rate hike, the European Central Bank is expected to pause its actions at its July meeting, barring a significant surge in energy prices.
In corporate news, Amazon founder Jeff Bezos, while launching a new AI-focused venture, downplayed concerns that artificial intelligence would lead to widespread job losses, suggesting it could instead create a labor shortage.
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