US stocks surged on Thursday, June 11, after President Donald Trump said he had cancelled planned strikes on Iran and that a settlement could be signed within days, helping Wall Street reverse earlier risk aversion as oil prices slid.
The Nasdaq Composite (.IXIC) jumped 2.5%, the Dow Jones Industrial Average (.DJI) climbed 1.9% and the S&P 500 (.SPX) rose about 1.8%, while Oracle (ORCL.N) fell sharply after its artificial intelligence spending plans overshadowed stronger earnings.
Market Snapshot
The rally turned a headline-driven session into the Nasdaq’s best day in just over two months. The S&P 500 closed near 7,393, the Dow near 50,848, and the Nasdaq near 25,810.
Treasury yields eased, and volatility fell as investors moved back into growth and semiconductor shares. The rebound followed earlier pressure from concern that renewed US strikes could disrupt energy supplies and add to inflation.
Steve Sosnick, chief strategist at Interactive Brokers, said in Thursday’s commentary that the rally showed traders were still ‘more fearful of missing a rally’ than preparing for a deeper pullback.
Event Details
Trump said documents for a settlement with Iran could be finalised over the next few days and possibly signed in Europe. Earlier in the day, he had threatened to hit Iran ‘very hard’ and raised the prospect of targeting Kharg Island, Iran’s key oil export terminal.
He later said planned strikes had been cancelled after talks reached Iran’s highest leadership. The Associated Press reported that Iran had not confirmed final settlement terms by late Thursday.
The reversal kept markets tied closely to diplomatic signals from Washington, Tehran and Gulf capitals. Reports of continued US-Iran talks and a meeting between UAE and Iranian security officials helped fuel expectations that a broader escalation could still be avoided.
Oil And Inflation
Oil prices fell as traders priced in a lower near-term risk of attacks on Iranian energy infrastructure. Brent crude was last down about 4.5% at $88.91 a barrel, while US West Texas Intermediate lost about 4.2% to $86.26.
Kharg Island is central to Iran’s crude exports, while the Strait of Hormuz remains a critical route for global oil and liquefied natural gas flows. Any lasting disruption would risk higher fuel, freight and input costs across major economies.
The move came alongside fresh US producer price data. The Bureau of Labor Statistics said final demand prices rose 1.1% in May and 6.5% over 12 months, the fastest annual increase since November 2022. Gasoline prices jumped 23.4% in the month.
Clark Bellin, president and chief investment officer at Bellwether Wealth, said in Thursday commentary that inflation measures were ‘flashing red’, even if part of the pressure could ease if the Iran conflict cools.
Oracle Drag
Oracle shares ended about 8.6% lower after the company’s spending plans unsettled investors, despite stronger quarterly results. The company reported revenue of about $19.2 billion and adjusted earnings of $2.11 a share.
Investor concern centred on Oracle’s plan for heavy data centre spending to support AI demand. Reports said fiscal 2027 capital expenditure could reach about $90 billion to $95 billion when customer-related impacts are included, with Oracle also planning to raise about $40 billion in debt and equity financing.
The decline underscored a broader tension in technology stocks. Investors continue to reward AI growth, but they are increasingly scrutinising the cash cost, funding needs and timing of returns from large infrastructure build-outs.
Outlook
A confirmed settlement could reduce the energy risk premium, support risk assets and ease some inflation pressure. Failure to finalise terms could quickly revive demand for oil, the dollar, bonds and defensive shares.
Traders will next watch whether Tehran confirms the agreement, whether shipping and oil flows through the Strait of Hormuz stabilise, and how the Federal Reserve responds to the latest inflation data at its June 17 policy meeting.
