U.S. stocks rose sharply after President Donald Trump signaled that a signing ceremony for a truce agreement with Iran could be held in Europe this weekend.
On Wednesday in New York, the Dow Jones Industrial Average closed at 50,848.75, up 929.97 points, or 1.86%, from the previous session. The Standard & Poor's 500 index ended at 7,394.30, up 127.31 points, or 1.75%, while the Nasdaq Composite finished at 25,809.66, up 640.16 points, or 2.54%.
Among the largest technology stocks by market capitalization, Nvidia rose 2.22%, while Apple gained 1.39%, Amazon 1.47%, Google parent Alphabet 0.39%, Broadcom 3.62%, Tesla 4.60%, and Micron 11.66%. Microsoft (-1.77%) and Facebook parent Meta (-0.45%) declined even in the rising market. Oracle fell 8.53% after announcing earnings following the previous day's market close, in which it presented a large-scale fundraising plan to build artificial intelligence (AI) infrastructure. Oracle said it would raise an additional total of $40 billion through debt and stock issuance in fiscal 2027.
Stocks opened higher as bargain hunting flowed into technology stocks early in the session. The Philadelphia Semiconductor Index also closed up 7.91%.
Further gains were limited, however, by continuing tensions between the United States and Iran. President Trump had warned of additional airstrikes on Iran, and Iran had completely closed the Strait of Hormuz.
New York stocks then extended their gains later in the session after President Trump announced that a signing ceremony for a truce agreement with Iran could be held this weekend. Through his social network service Truth Social, President Trump said, "Based on the fact that the discussions with Iran have gone up to Iran's supreme leadership and received approval, I, as President of the United States, have canceled the airstrikes and bombing of Iran that were scheduled for this evening (the 11th)."
President Trump went on to say at a proclamation signing ceremony held at the White House in Washington, D.C., "We have just reached a wonderful agreement with Iran regarding the war," adding, "Only the final coordination of the document remains." He continued, "It will be finalized within the next few days, and the signing ceremony will probably be held in Europe this weekend," explaining, "I will not be able to attend, but Vice President JD Vance will attend." He added that he had spoken with the leaders of countries around Iran, including Israel, Qatar, the United Arab Emirates (UAE), Saudi Arabia, Bahrain, and Kuwait, in connection with the matter, and assured, "The Strait of Hormuz will open as soon as it is signed."
In response, Iran's Fars News Agency claimed, "We have not approved any text regarding the initial memorandum of understanding with the United States," while also asserting, "On the 10th, mediator Qatar said the United States had withdrawn the additional clauses it had previously demanded." The agency also said, "Iran has returned to the original draft it had been awaiting final approval of," emphasizing, "Despite the United States' noticeable shift in position, President Trump is packaging it as if Iran took a step back under the pressure of bombing." It added, "Not only has Iran not yet given a final answer, but it is rather the United States that has returned to the past conditions," explaining further, "As the United States has consequently accepted the original draft, Iran's top leadership is also likely to give final approval to the text."
The May Producer Price Index (PPI) was also released that day. According to the U.S. Department of Labor, the May PPI rose 1.1% from April, exceeding the market forecast of a 0.7% increase. Compared with May of last year, it surged 6.5%, the highest since November 2022. The core PPI, which excludes the volatile food and energy categories, rose 0.4%, slightly below the market forecast of 0.5%. The core PPI rose 4.9% year-on-year.
International oil prices plunged on President Trump's cancellation of the Iran airstrikes and his signal of a truce agreement. On Britain's ICE Futures Europe in London, Brent crude futures for August delivery recorded $90.38 per barrel, down 2.92% from the previous session. On the New York Mercantile Exchange, U.S. West Texas Intermediate (WTI) crude futures for July delivery also closed at $87.71 per barrel, down 2.58%.
