Dow surges 900 points after Trump says U.S. will soon sign deal with Iran, oil falls

The three leading U.S. indexes closed solidly higher on Thursday.

The S&P 500 rose 1.75% to end the day at 7,394.30, while the Nasdaq Composite jumped 2.54% to 25,809.66. The Dow Jones Industrial Average moved up 929.97 points, or 1.86%, to 50,848.75.

— Sean Conlon

SpaceX’s initial public offering this week is set to be the biggest ever in history, flooding the stock market with new shares that begs the question: where is the money going to come from?

As far as Wall Street is concerned, the stock market has what it takes to absorb the new equity supply. In the 12 months to September 2025, S&P 500 companies issued roughly $1.7 trillion, or roughly $140 billion a month, according to Gavekal Research.

What that means is that SpaceX’s anticipated $75 billion capital raise will absorb just a little over two weeks of shareholder payouts, according to the firm.

Read the full story here.

— Sarah Min and Deena Zaidi

Space-related stocks have staged a powerful rally this year as investors position for the highly anticipated initial public offering of SpaceX, but short sellers appear unconvinced the gains can last.

A basket of publicly traded space companies has surged in 2026, led by Viasat, which has more than doubled, and Intuitive Machines, up about 88%. Shares of Virgin Galactic, Planet Labs and Rocket Lab have also posted gains of more than 60% this year.

Yet bearish investors have largely held their ground. Data from S3 Partners show short interest remains elevated across the group, with roughly 30% of the float sold short in AST SpaceMobile and 27% in Virgin Galactic and Intuitive Machines. In several cases, short interest has actually increased over the past month, including at AST SpaceMobile, Intuitive Machines and Virgin Galactic.

The divergence highlights a growing debate over whether enthusiasm surrounding the commercial space industry — amplified by SpaceX’s IPO, which is expected to value the Elon Musk-led company at roughly $1.8 trillion — has run ahead of fundamentals.

While bulls see the offering drawing fresh capital and attention to the sector, skeptics argue many space companies continue to face long development timelines, heavy capital requirements and uncertain paths to profitability.

— Yun Li

The State Street SPDR S&P Retail ETF (XRT) took a leg up on Thursday, putting the fund on track for its best week in more than six months.

The ETF climbed more than 2% in the session, bringing its week to date gain to around 5.4%. If it holds, that would mark the fund’s biggest weekly gain since November, when it added more than 5.5% in one week.

Casey’s General Stores and Abercrombie & Fitch led the fund higher this week with gains of around 19% each. But Chewy and EVgo were among the stocks restricting gains, as the pair respectively fell 9.8% and 8%.

State Street PDR S&P Retail ETF, 5-day

President Donald Trump on Thursday canceled the U.S. military’s latest round of strikes against Iran, claiming, “Discussions and final points have been, in both concept and great detail, approved by all parties involved.”

But the U.S. Naval blockade of Iranian ports in the Gulf of Oman will “remain in full force and effect until this Transaction is finalized,” said Trump, who has claimed for months that a peace deal with Iran is close at hand. Read more.

— Kevin Breuninger

The pan-European Stoxx 600 index closed 0.6% higher Thursday, with major bourses in London, Paris, Frankfurt and Milan all making gains, after the European Central Bank announced its first rate rise in three years.

Most sectors finished in positive territory, with oil and gas stocks up almost 2%, as energy prices edged higher after President Donald Trump said the U.S. would take Iran’s Kharg Island and “assume control” of its oil and gas infrastructure.

The ECB’s quarter-point hike lifted the deposit rate to 2.25%, making it the first G7 central bank to respond to inflationary pressures caused by the U.S.-Iran war. Germany’s 10-year Bund yield — the key indicator for euro zone debt — was last seen flat at 3.0273%.

In the U.K., 10-year Gilt yields dropped more than 3 basis points to 4.905%, after defense minister John Healey resigned Thursday over defense and security spending plans, dealing a fresh blow to Prime Minister Keir Starmer’s leadership.

— Hugh Leask

These are the companies making headlines in midday trading:

• Viasat– Shares were up more than 8% after Viasatannouncedthat the U.S. Space Force awarded it a multi-year contract to deliver a dual-band satellite system under the Protected Tactical SATCOM-Global program.
• EchoStar– The satellite communications company gained more than 8% ahead of SpaceX’s initial public offering slated for Friday. EchoStar holds a stake in SpaceX shares.
• General Dynamics– The defense contractor saw shares gain almost 5% on the back ofan upgrade to buyfrom Jefferies. The firm said that General Dynamics’ investments are “paying off” and pointed to “continued strength of [near-term] results.” Jefferies’ new price target of $400 implies 17% upside from Wednesday’s close.

Read here for the full list.

— Michelle Fox

Oracleshares tumbled 11% and headed for their worst day since January 2025, after the software maker told investors to expect an additional $20 billion capital raise while reporting negative free cash flow for the year.

With Thursday’s drop, the stock is now down for the year, falling about 8% and trailing the Nasdaq, which is up about 9%. Read more.

ORCL, 1-day

The hotter-than-expected wholesale prices report is another data point that could push the Federal Reserve to hike interest rates, said Clark Bellin, chief investment officer of Bellwether Wealth.

“[I]t’s clear that all of the main measures of inflation are flashing red,” he said. “We acknowledge that this inflationary spike is likely temporary and will subside once the Iran war ends, but there is increasing concern that the Iran conflict will persist for some time, , which means higher oil prices and higher inflation.”

— Michelle Fox

Pawn stocks are struggling today and Canaccord Genuity analysts say fluctuating gold prices “is the most obvious reason.”

Companies operating pawn shops, such as EZCORP Inc.,is down by 12% points while Firstcash Holding Inc. is down by 9% points.

Meanwhile the yellow metal has moved -4% midday and -24% since it reached anall-time high close in January.

“When gold prices go up, the company should theoretically benefit, as gold makes up most of its collateral.” the analysts wrote.

Despite the disappointing performance, analysts say it’s a good time to buy pawn stocks.

“We briefly caught up with the EZPW and FCFS management teams this afternoon, who were equally surprised by the share price movements. These stocks are on sale, in our view, and we’d encourage investors to use the selloff as an opportunity to initiate or build positions”

Analysts say pawn stocks are still trumping gold for the year with EZCORP Inc. up by 44%, Firstcash Holding Inc. up by 32% and gold down by 4%.

— Ananya Chetia

The three major averages began Thursday’s session in the green.

The S&P 500 rose 0.4% shortly after the opening bell, while the Nasdaq Composite climbed 0.5%. The Dow Jones Industrial Average advanced 248 points, or 0.5%.

— Sean Conlon

U.S. crude oil futures rose to $90.71 per barrel and Brent futures were up less than 1% to $93.48. The

Oil prices jumped after President Donald Trump threatened to seize Kharg Island, the center of Iran’s oil-export operations, sharply escalating tensions between Iran and the U.S.

“The United States will be hitting Iran (Whose Navy, Air Force, Radar, Anti Aircraft, and all other forms of Defense, together with most its offensive capability, are GONE!), VERY HARD TONIGHT,” Trump said in a Truth Social post.

Kharg Island is a critical hub for Iran’s crude exports so any threat against its terminals could impact the global energy markets. Roughly 90% of Iran’s crude oil goes through this terminal. The latest comments also added to concerns about shipping through the Strait of Hormuz.

“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, much like we have with Venezuela, which is working out brilliantly for both Venezuela and the United States of America,” the president said.

— Deena Zaidi

The pan-European Stoxx 600 was up 0.59% after President Donald Trump said the U.S. plans to take over Iran’s “oil infrastructure points”, including seizing control of Kharg Island.

In a TruthSocial post, Trump said the U.S. will be hitting Iran “VERY HARD TONIGHT”, adding that the U.S. would “assume total control” of Tehran’s oil and gas markets, as it had done in Venezuela.

Major bourses in London, Paris and Milan were in positive territory by shortly after 1:45 p.m. London time (8:45 a.m. E.T.). Most regional sectors made gains, with oil and gas stocks leading the advance, rising almost 2.1% in afternoon trade.

— Hugh Leask

Wholesale prices rose more than expected in May, indicating that pipeline inflationary pressures are percolating higher, the Bureau of Labor Statistics reported Thursday.

The producer price index, a measure of final demand costs, increased a seasonally adjusted 1.1% on the month, putting the 12-month wholesale inflation rate at 6.5%. Economists surveyed by Dow Jones had been looking for a monthly move of 0.7%.

The annual headline inflation rate was the highest since November 2022. The monthly gain matched the April increase. Read more.

— Jeff Cox

The European Central Bank announced a quarter-point rate hike on Thursday, bringing its key interest rate to 2.25% as the Iran war continues to blow inflation off target.

Markets had been pricing in a near-100% chance of the ECB raising rates by at least 25 basis points ahead of its June Governing Council meeting, according to LSEG data. Read more.

— Chloe Taylor

Here are some of the names moving before the opening bell:

• Intel — The semiconductor company was double upgraded to buy from underperform at Bank of America. Shares jumped 5.5%.
• Alcoa — The aluminum company added 2% following its 9.5% drop in the prior session. Morgan Stanley called the pullback Wednesday was “overdone” and reiterated its buy rating on the stock.
• Oracle — The software giant sank 8.6% after sharing plans to raise an additional $20 billion in equity and debt to pay for its AI buildout.

Read the full story here.

— Michelle Fox

Two Wall Street firms initiated coverage onSpaceX, as Elon Musk’s company gets ready to launch its public markets debut at the Nasdaq on Friday.

Oppenheimer initiated coverage with an outperform rating and a 12- to 18-month price target of $190. That implies a gain of 40% from itsIPO price of $135.Analyst Timothy Horan noted he expects the stock to be volatile, though the stock should gain to start.

New Street Research initiated coverage on company with a $165 12-month price target. That indicates a 22% gain from the IPO price. The firm did not initiate a rating on the stock.

Read the full story here.

— Davis Giangiulio and Sarah Min

Asia-Pacific markets closed mixed Thursday, as Middle East tensions keep investors on tenterhooks.

Japan’sNikkei 225ended the day flat at 64,217.27, while South Korea’s Kospi rebounded from early losses to rise 0.43% to 7,763.95.

Hong KongHang Seng Indexfell 0.77% in its last hour of trade, while mainland China’s CSI 300 dropped 0.55% to 4,722.41. Australia’s benchmark S&P/ASX 200 slipped 0.23% to 8,633.20.

— Justina Lee

Stocks listed in Europe edged higher at the open on Thursday, with the pan-European Stoxx 600 adding around 0.4% by 8:30 a.m. in London (3:30 a.m. ET).

Oil and gas stocks were higher in early trading, leading regional gains on a 1.2% rise after oil prices rose amid escalating conflict in the Middle East.

— Chloe Taylor

OpenAI CEO Sam Altman will be in South Korea next week to meet with Samsung’s executives on AI cooperation, according to a report on the Yonhap News Agency website that cited industry sources.

Altman, who is scheduled to visit Samsung‘s office in the south of Seoul on Monday, will deliver a lecture on AI technologies and strategies for AI-driven workplace innovation, Yonhap reported.

This will be Altman’s first trip to the country in about eight months. In his last visit in October, he held separate meetings with Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won. Altman signed letters with both companies after the meetings to work on the development of core global AI infrastructure.

— Justina Lee

South Korean retail giant Coupang has reportedly been hit with a record fine of 624.7 billion won ($409 million) over a massive data breach and for the unauthorized collection of online user activities.

Korea’s Personal Information Protection Commission fined Coupang 423.58 billion won ($277 million)over a data breach that affected more than 37 million users last November, according to a report on the Yonhap News Agency website.

The company was also fined an additional 201.16 billion won for the unauthorized collection of online user activities.

“This accident occurred due to Coupang’s lack of safety measures and systems, not sophisticated hacking,” Song Kyung-hee, the chairperson of the privacy regulator, told a briefing on Thursday, according to Reuters.

Coupang apologised after the fine was announced, Reuters reported.

Shares of the company were down almost 5% in the U.S.

The cryptocurrency sector is still in the early innings of what it can do, as building new financial structures from scratch could take decades to develop, said Lily Liu, president of public blockchain platform Solana.

“If you look at what time frame it took to build the internet, to build the underlying hardware, to build the underlying protocols of all of the infrastructure that we use today, that took decades before you had those breakthrough consumer moments in the ’90s,” Liu said, speaking to CNBC’s Squawk Box Asia.

Wall Street is also becoming more friendly towards crypto spaces, she noted, adding that “Wall Street has embraced crypto, crypto has been embraced [by] Wall Street.”

“For many folks on Wall Street, they simply see this as an incredible additional distribution channel, and if you’re an asset issuer, you can distribute your assets to a larger audience,” she added.

— Justina Lee and Matthew Chin

Asia-Pacific markets opened lower Thursday, with South Korea’s Kospi leading losses.

The Kospi dropped 4.1% in early trading, while the small-cap Kosdaq lost 2.8%. Japan’sNikkei 225declined 2.3% and the Topix slipped 1.9%.

Australia’s benchmark S&P/ASX 200 was down 0.97%.

Hong KongHang Seng indexfutures last traded at 24,307, lower than the index’s Wednesday close of 24,407.96.

— Justina Lee

Asia-Pacific markets were set to open lower Thursday, as fresh tensions in the Middle East and higher oil prices fuel risk-off sentiment.

Japan’sNikkei 225was poised to decline, with the Chicago futures contract at 62,935 and its Osaka counterpart last trading at 63,140, compared with the index’s previous close of 64,179.27.

Hong KongHang Seng indexfutures last traded at 24,307, lower than the index’s Wednesday close of 24,407.96.

In Australia, futures for the S&P/ASX 200 last traded at 8,601, while theindex closed at 8,653.30.

The U.S. started striking Iran on Wednesday, raising worries that the conflict escalating. In apost on X, U.S. Central Command said that the U.S. military began “launching additional self-defense strikes today at 5:15 p.m. ET against multiple targets in Iran at the Commander in Chief’s direction.”

Tehran has targeted U.S. ships in the Strait of Hormuz with missile and drone attacks, according to Iranian state media.

— Justina Lee

Investors ought to stick with high quality assets in their fixed income portfolios as the global economy navigates turmoil in the Middle East and inflationary forces, according to Pimco’s 2026 secular outlook.

“Fragmentation is becoming evident around the world in energy prices, supply chain data, growth rates, and investment returns,” said the report, authored by global economic advisor Richard Clarida, chief investment officer of global fixed income Andrew Balls and CIO Dan Ivascyn. “The cost of complacency has surged. Investors can no longer rely on outdated assumptions about globalization, policy backstops, and suppressed volatility.”

However, investment opportunities remain abundant thanks to the generational reset in bond yields a few years ago, the Pimco team wrote. It just means staying up in quality.

“Investors can seek to construct globally diversified, high quality fixed income portfolios with yields of 5%–7% in local-currency terms – competitive with long-run equity returns at lower potential volatility,” they said.

The firm expects “significantly higher losses” in lower-credit quality assets.

— Michelle Fox

These are the stocks moving the most in extended-hours trading:

• Oracle — Shares shed more than 9% after the software giant shared plans to raise an additional $20 billion in equity and debt to pay for its artificial intelligence buildout. However, the company reported an overall beat on both the top and bottom lines and raised its adjusted profit forecast for the year.
• Navan — Shares jumped 18% after the travel management platform guided for second-quarter and full-year revenue that came in above FactSet’s forecasts. Navan also reported a first-quarter non-GAAP earnings and revenue beat.

— Lisa Kailai Han