U.S. stocks surged after President Donald Trump said the United States was close to signing an agreement with Iran and had cancelled planned military strikes. The announcement eased fears of a broader Middle East conflict and helped investors return to risk assets.
The Dow Jones Industrial Average jumped 929.97 points, or 1.86%, to close at 50,848.75. The S&P 500 gained 1.75% to 7,394.30, while the Nasdaq Composite rose 2.54% to 25,809.66.
The rally marked a sharp turnaround from the previous session, when stocks came under pressure from renewed weakness in semiconductor shares and rising tensions in the Gulf region.
Trump said the U.S. had reached a deal that would prevent Iran from obtaining a nuclear weapon. He also said the documents were close to being finalised and that a signing could take place soon.
Earlier, Trump said he had cancelled scheduled strikes against Iran. He added that the naval blockade would remain in place until the agreement was finalised, with details on the signing expected to be announced later.
However, investors are still watching the situation closely. Iran has not fully confirmed that a final deal has been approved, meaning geopolitical risk has not disappeared completely.
Semiconductor stocks were among the strongest performers. Micron Technology, Advanced Micro Devices, and Intel helped lift the broader market, while the iShares Semiconductor ETF gained more than 8%.
Intel rose after Bank of America upgraded the stock from underperform to buy. The move helped restore confidence in chip stocks after a sharp selloff earlier in the week raised concerns that the sector’s powerful rally may have gone too far.
Investor interest in artificial intelligence also remains strong. Traders continue to watch AI-related infrastructure, chip demand, and major tech fundraising plans as key drivers of market sentiment.
Inflation Data Sends Mixed Signals
Fresh inflation data gave investors a more complicated picture. The producer price index rose 1.1%, higher than economists expected. This showed that wholesale price pressures remain present.
However, core inflation, which excludes food and energy, came in below expectations. That helped reduce some concern that higher oil prices were spreading into the broader economy.
Because oil prices are now falling, investors may become more confident that inflation pressure can remain contained if geopolitical tensions continue to ease.
Not all technology stocks joined the rally. Oracle shares fell after the company announced plans to raise additional capital through equity and debt to support its artificial intelligence expansion.
The decline showed that investors still support the AI growth story, but they are becoming more selective. Companies with strong AI exposure may benefit, while those facing heavy spending needs could come under greater pressure.
As of Friday, June 12, markets are being driven by three major themes: hopes for a U.S.–Iran agreement, falling oil prices, and renewed strength in semiconductor stocks.
The short-term mood on Wall Street has improved, but the rally remains sensitive to new headlines. If the U.S. and Iran confirm a final agreement, stocks could continue to benefit from lower geopolitical risk and weaker oil prices.
However, if talks stall or tensions rise again, oil could rebound and pressure stocks once more. For investors, the next key signals will be updates on the Iran deal, oil-market movements, inflation data, and the strength of the AI and semiconductor sectors.
