Wall Street powered a rebound in stocks as oil fell after President Donald Trump signaled the war that has rattled global markets is close to an end.
Equities halted a two-day slide, with the S&P 500 rising 2%. US oil sank to around $86, easing concerns about inflationary pressures and driving bond yields lower. An 8% rally in a key gauge of chipmakers added to optimism. SpaceX has made history with the biggest-ever IPO, launching it into the top ranks of the largest public companies.
President Trump said the US “just made a great settlement of the war with Iran, and we’re going to be subject to finalization of documents.” “We should get done over the next few days. Probably have a signing, maybe in Europe,” he added.
“While the path toward a resolution is likely to be uneven, our base case is that diplomacy ultimately prevails, allowing investors to refocus on resilient economic fundamentals and robust earnings growth in both the US and Europe,” said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office.
Meantime, SpaceX, known officially as Space Exploration Technologies Corp., sold 555.6 million shares at $135 each, according to a statement on its website Thursday. SpaceX’s IPO is more than double the size of Saudi Aramco’s $29.4 billion listing in 2019.
Corporate Highlights:
- Oracle Corp. sank after the company reported quarterly capital expenses that were higher than estimates, raising investor concerns about the profitability of the AI infrastructure business.
- Intel Corp. jumped as Bank of America Corp. turned bullish on the chipmaker and upgraded it a buy, citing the increased certainty about the company’s ability to succeed in the artificial intelligence era.
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OpenAI
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is considering significant price cuts for its services in anticipation of similar cost reductions from rival Anthropic PBC, according to people familiar with the matter, hinting at the possibility of a pricing war in the lead-up to their expected public offerings.
- OpenAI · has agreed to acquire Ona, a startup that offers cloud services to support artificial-intelligence agents, part of a bid by the AI developer to make its technology more useful for businesses.
- Eaton Corp. agreed to merge its mobility business with Dana Inc. in a deal valuing the combined company at roughly $10 billion including debt.
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Some of the main moves in markets:
Stocks
- The S&P 500 rose 2% as of 3:34 p.m. New York time
- The Nasdaq 100 rose 3.5%
- The Dow Jones Industrial Average rose 2.1%
- The MSCI World Index rose 1.7%
- Philadelphia Stock Exchange Semiconductor Index rose 8%
Currencies
- The Bloomberg Dollar Spot Index fell 0.3%
- The euro rose 0.4% to $1.1583
- The British pound rose 0.4% to $1.3425
- The Japanese yen rose 0.5% to 159.71 per dollar
Cryptocurrencies
- Bitcoin rose 3.2% to $63,697.26
- Ether rose 3.5% to $1,686.9
Bonds
- The yield on 10-year Treasuries declined 10 basis points to 4.45%
- Germany’s 10-year yield declined four basis points to 3.03%
- Britain’s 10-year yield declined three basis points to 4.90%
Commodities
- West Texas Intermediate crude fell 4.3% to $86.12 a barrel
- Spot gold rose 3.4% to $4,208.88 an ounce