Traders work on the floor of the New York Stock Exchange (NYSE) in New York City. <\/p>\n
Spencer Platt | Getty Images<\/p>\n
U.S. equities gained on Thursday, boosted by a rebound in chip stocks, after President Donald Trump<\/a> called off the strikes on Iran scheduled for this evening and said the U.S. is going to soon sign a deal with the country.<\/p>\n The S&P 500<\/a> gained 1.75% to close at 7,394.30, while the Nasdaq Composite<\/a> added 2.54% to 25,809.66. The Dow Jones Industrial Average<\/a> rose 929.97 points, or 1.86%, and settled at 50,848.75.<\/p>\n Trump told reporters in the Oval Office that “we have a deal that Iran will never have a nuclear weapon.” He continued, “We have a signing soon, and the documents are in pretty final shape. It should be done and it should be done pretty quickly.”<\/p>\n Equities had rallied earlier Thursday after Trump said in a Truth Social post<\/a> that he “cancelled the scheduled strikes and bombings against Iran this evening.”<\/p>\n “The Naval Blockade will remain in full force and effect until this Transaction is finalized \u2014 Time and place of the signing to be announced shortly,” he added.<\/p>\n West Texas Intermediate crude futures<\/a> fell 2.58% to settle at $87.71 a barrel after Trump’s announcement. Brent crude futures<\/a> tumbled 2.92% to end at $90.38 a barrel. Both continued sinking post-settle.<\/p>\n Markets were on edge prior to those comments. Oil prices had risen after Trump said in a separate Truth Social post<\/a> that the U.S. will be attacking Iran “VERY HARD TONIGHT.” He also said, “At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets.”<\/p>\n “Markets don’t seem to be fazed” by the Middle East conflict, said Thomas Martin, senior portfolio manager at Globalt Investments. “[The] inflation reports that we’ve gotten don’t show that the higher price of oil is really pushing through to other areas, so the underpinnings of the economy are still fairly strong. That’s all kind of status quo-ish for the markets.”<\/p>\n The producer price index increased 1.1% in May<\/a>, the Bureau of Labor Statistics reported Thursday. That’s more than the 0.7% that economists polled by Dow Jones expected. Core inflation \u2014 which excludes volatile food and energy prices \u2014 stood at 0.4%, below the Dow Jones forecast for 0.5%.<\/p>\n A rebound in Micron Technology<\/a>, Advanced Micro Devices<\/a> and Intel<\/a> provided momentum to the market. The iShares Semiconductor ETF (SOXX)<\/a> gained more than 8%. The chip ETF was under pressure again earlier this week following a 10% drubbing on Friday that’s called many investors to question whether the parabolic move in the sector was over. Intel was upgraded by Bank of America from underperform to buy on Thursday and the shares responded with a 9% gain.<\/p>\n Enthusiasm is building ahead of SpaceX’s debut on Friday, which could highlight the expected growth in the AI buildout. Although some traders believe the recent chip weakness is due to investors selling the stocks in their portfolios<\/a> to make room for the IPO<\/a>, which will be the largest debut ever at a roughly $1.8 trillion valuation.<\/p>\n Still, not all of tech was a bright spot Thursday. Shares of Oracle<\/a> dropped 8% as the software giant<\/a> announced plans to raise an additional $20 billion in equity and debt to pay for its artificial intelligence buildout.<\/p>\n Stocks fell during the previous session, thanks to another rout in the chip sector and a ramp-up in tensions with Iran.<\/p>\n","protected":false},"excerpt":{"rendered":"Traders work on the floor of the New York Stock Exchange (NYSE) in New York City. 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