U.S. stocks surged on June 11, as President Donald Trump canceled planned airstrikes on Iran, easing fears of escalating tensions in the Middle East.
On the New York Stock Exchange, the Dow Jones Industrial Average closed up 1.9% at 50,848.75. The S&P 500 rose 1.8% to finish at 7,394.30, while the Nasdaq Composite jumped 2.5% to close at 25,809.66.
The Russell 2000 index, which tracks small-cap stocks, also saw a significant increase, rising 3.0% to 2,921.03. According to the Associated Press, this marked the strongest gain for the New York stock market in the past two months.
Investor sentiment improved rapidly following Trump's announcement. He stated on Truth Social that the planned strikes and bombings were canceled due to discussions with Iran being approved at the highest levels.
As expectations for reduced tensions in the Middle East grew, international oil prices fell, contributing to a rebound in technology and semiconductor stocks. Reuters reported that the buying momentum in tech stocks and hopes for peace in the region drove the market's rise.
Among individual stocks, semiconductor shares saw notable gains. Intel surged by 10% during trading, while Nvidia and Micron rose by approximately 1% and 2%, respectively. The Philadelphia Semiconductor Index climbed over 4%. However, Oracle's stock plummeted after its capital expenditure forecast for fiscal year 2027 exceeded market expectations.
Additionally, excitement surrounding SpaceX's initial public offering (IPO) fueled risk appetite among investors. SpaceX set its offering price at $135 per share, aiming to raise $75 billion, which would make it the largest IPO in history.
Despite the positive market movement, inflation concerns remain. The U.S. Department of Labor reported that the Producer Price Index (PPI) rose by 1.1% from the previous month and 6.5% year-over-year in May, exceeding market expectations, driven by rising energy prices.
While inflation indicators were strong, the market reacted more significantly to the easing of Middle Eastern tensions and the rebound in tech stocks. Investors are closely watching the Federal Open Market Committee (FOMC) meeting scheduled for June 16-17, anticipating signals regarding the Federal Reserve's interest rate path.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.