MARKET SNAPSHOT

U.S. stocks jumped while oil prices, Treasury yields and the dollar fell after President Trump said he canceled planned strikes on Iran as they closed in on a deal to end the conflict. Gold prices were moderately lower.

MARKET WRAPS

EQUITIES

Stocks surged and oil prices fell after President Trump said on social media that he was canceling the latest planned strikes on Iran.

All three major indexes finished the day more than 1.5% higher after the president said multiple countries had agreed to a deal, with the U.S. naval blockade remaining in place until the agreement was finalized. The Nasdaq composite led gains, rising around 2.5%. The Dow industrials added nearly 2%. The S&P 500 advanced 1.8%.

The gains came despite an 8.5% drop in Oracle shares after the software and cloud-computing company reported larger-than-forecast spending on data centers. While investors remain on edge following a recent slide in AI stocks, shares of chip makers and other AI-related stocks rose. Investors are also gearing up for the first day of trading for Elon Musk's SpaceX, which officially sold $75 billion worth of shares in the biggest IPO ever.

Earlier Thursday, Asian stocks mostly fell as heightened tensions between the U.S. and Iran and rising U.S. inflation both weighed on market sentiment.

Beijing's market regulator summoned five major Chinese e-commerce platforms, including Alibaba, JD.com over issues including excessive competition, sending their shares down 5.5% and 3.4%, respectively.

China's Shanghai Composite Index edged 0.2% lower and the Shenzhen Composite Index lost 0.7%. The tech-focused ChiNext Price Index declined 1.1%.

Hong Kong's Hang Seng Index fell 0.7% with the Hang Seng Tech Index declining 1.5%.

Japan's Nikkei Stock Average edged 0.1% higher, led by energy and food stocks.

South Korea's Kospi also reversed early losses to move 0.4% higher as SK Hynix and retail shares advanced.

Stocks in Australia slipped, as the S&P/ASX 200 fell 0.2%. New Zealand's S&P/NZX 50 Index gave back 0.4%.

COMMODITIES

Oil futures ended lower in a choppy session as President Trump threatened, then canceled, further strikes against Iran, raising hopes for a prompt end to the conflict.

Trump said discussions and final points have been approved at the highest level of the Iranian leadership and with all parties involved, but that the U.S. naval blockade will remain in force until a deal is finalized.

"The market is performing as if it thinks a deal will get done sooner rather than later," Mizuho's Robert Yawger said. "Crude oil has been trading in a downward sloping channel since the middle of May."

WTI settled down 2.6% at $87.71 a barrel and Brent fell 2.9% to $90.38.

Front month Comex gold for June delivery lost 0.4% to settle at $4090.30 per troy ounce.

TODAY'S TOP HEADLINES

Trump Cancels Iran Strikes, Says Peace Deal Could Be Signed in 'Coming Days'

President Trump says he has an agreement with Iran to end the war, but that the final details still need to be completed in the coming days.

"We just made a great settlement of the war with Iran, and we're going to be subject to finalization of documents, which should get done over the next few days," Trump said at the White House on Thursday.

He said Vice President JD Vance could travel to Europe for a signing ceremony that may take place over the weekend. Trump said he wouldn't attend the event himself.

ECB Becomes First Major Central Bank to Raise Rates Since Inflation Resurgence

The European Central Bank raised interest rates for the first time in almost three years, leading the charge among central banks in the developed world in tackling inflation driven by the war in Iran.

The ECB lifted its key rate to 2.25% from 2%, a move that was widely expected by markets, but which underscores the challenges facing major economies from the jump in energy prices caused by the prolonged closure of the Strait of Hormuz. Investors are betting the central bank will lift rates at least once more this year.

ECB President Christine Lagarde said higher energy prices have already begun to spread throughout the economy.

Global Economy Could Slow to Half Its 2025 Pace if War Continues, Warns World Bank

The global economy could grow this year at less than half its 2025 pace if the conflict in the Middle East leads to a lengthy reduction in energy supplies and a sharp fall in equity prices, the World Bank said Thursday.

The conflict is now in its fourth month, with little sign of a lasting peace. The U.S. began a fresh wave of attacks on Iran on Wednesday, launching strikes against several targets on President Trump's orders.

In a twice-yearly report on the global outlook, the World Bank said it expects economic growth to slow to 2.5% this year from 2.9% last year, assuming that shipments of oil, natural gas and other raw materials through the Strait of Hormuz begin to return to normal from August.

Iran's Crude Production Slumped in May Under U.S. Blockade

Iran's crude production slumped more than 18% last month as U.S. forces continue to block shipments to and from the country's ports, choking off exports and raising the risk that Tehran could soon run out of places to store its crude.

Output fell by 546,000 barrels a day to 2.33 million barrels a day, according to data from the Organization of the Petroleum Exporting Countries.

Tensions in the region escalated this week, with President Trump threatening to strike Iran again Thursday and saying the U.S. "in the not too distant future" would be taking Kharg Island, Tehran's main oil export hub.

SpaceX IPO Draws at Least $5 Billion Order From BlackRock

Elon Musk's SpaceX is preparing to stage the largest public offering ever, selling $75 billion of shares in one fell swoop. Investors are showing up.

BlackRock put in an order to buy at least $5 billion of SpaceX shares, according to people familiar with the matter, and other large asset managers submitted similarly eye-popping orders. While such firms often buy large stakes in IPOs, orders of this size are multiples of those seen in traditional offerings.

To put it in context, the largest IPO of the year ahead of SpaceX was the chip maker Cerebras, which raised $5.55 billion total in its offering.

Amazon Says Its Data Centers Used 2.5 Billion Gallons of Water in 2025

Amazon said its global data-center operations withdrew about 2.5 billion gallons of water in 2025, as data center companies around the world face growing scrutiny over the environmental impact of artificial intelligence.

The company disclosed the figure in a blog post Thursday outlining its water-efficiency efforts. Amazon said water use at sites it owns and operates directly fell 2% from 2024 levels, even while it expanded its data-center footprint.

Amazon said its data centers used 0.12 liters of water per kilowatt-hour of electricity in 2025, which it said was more efficient than the industry average. The company said by the end of this decade it will return more water to communities than its direct operations consume.