US stocks rally on Iran tensions easing, Nasdaq gains over 2%

US stock markets posted substantial gains Thursday, according to reports. The Dow Jones Industrial Average surged approximately 900 points while the Nasdaq advanced over 2%, reflecting broad-based investor optimism. President Trump's announcement regarding a likely Iran deal and the decision to call off strikes contributed to the positive sentiment, the reports indicated. The easing of geopolitical tensions led to lower oil prices, which typically benefits equities and reduces inflation concerns. Investors were also watching developments around SpaceX's anticipated record-breaking initial public offering, with shares set to debut Friday.

Despite producer price data raising inflation concerns, the market demonstrated notable resilience throughout the session. Major indexes posted significant gains as traders balanced geopolitical relief against macroeconomic headwinds. The Federal Reserve is expected to maintain current interest rates, according to market expectations, providing some certainty for equity valuations.

The combination of de-escalation in Middle East tensions and stable monetary policy expectations created a favorable environment for equities. Lower oil prices reduce input costs for many industries while easing inflation pressure, supporting broader market valuations. Risk-off assets benefit when geopolitical uncertainty diminishes, as investors regain appetite for growth-oriented equities like technology stocks reflected in the Nasdaq's outperformance. The upcoming SpaceX IPO adds another catalyst for market enthusiasm, though traditional economic data remains mixed. Traders continue monitoring inflation indicators and Fed communications for signals about future policy direction.

Source: Markets-Economic Times