ASX set to jump as US markets rally on Iran deal progress
US markets surged on Thursday after President Donald Trump canceled planned military strikes against Iran and signaled a near deal, with the S&P 500 rising 1.75% and Nasdaq up 2.54%. Technology stocks led gains, while oil prices fell sharply, easing inflation concerns and boosting investor sentiment ahead of SpaceX’s historic IPO and potential Iran agreement signing in Europe this weekend.
US stock markets rallied sharply on Thursday following President Donald Trump’s announcement that planned military strikes against Iran had been canceled and that a formal agreement between the two countries was close. The S&P 500 climbed 1.75% to 7,394.30, the Nasdaq Composite jumped 2.54% to 25,809.66, and the Dow Jones Industrial Average rose 1.86% to 50,848.75. Trump stated that the US had secured an agreement ensuring Iran would never possess a nuclear weapon, with a signing ceremony expected soon. Technology and semiconductor stocks drove the rebound, recovering from earlier losses. The iShares Semiconductor ETF surged over 8%, with Micron Technology, Advanced Micro Devices, and Intel gaining 9% after a Bank of America upgrade. Arm Holdings and Marvell Technology each rose over 11%, while Nvidia added 2.2% and Tesla climbed 4.6%. Oracle fell 8% after announcing a $20 billion funding raise for AI investments. Investor optimism also built ahead of SpaceX’s market debut, projected to be the largest IPO in history, with over $100 billion in retail orders. Economic data showed mixed results: US producer prices rose 1.1% in May, exceeding forecasts, but core producer inflation came in at 0.4%, below expectations. Oil prices dropped as a diplomatic resolution to the Iran conflict appeared likely. US West Texas Intermediate crude fell 2.58% to $87.71, and Brent crude declined 2.92% to $90.38. The 10-year Treasury yield dropped 9 basis points to 4.46%, reflecting reduced geopolitical risk. Gold rose above $4,200 an ounce amid cautious optimism. Australian shares are expected to open higher, with S&P/ASX 200 futures up 1.7% as Wall Street’s rebound and lower oil prices support sentiment. Technology stocks may lead gains locally, while investors await further developments on the Iran deal, including a potential signing ceremony in Europe this weekend and the reopening of the Strait of Hormuz. SpaceX’s IPO, priced at $135 per share and set to begin trading Friday, remains a key focus for global markets.
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