Dow jumps 920 points as Trump halts Iran strikes, chip stocks rally

• Trump announced cancellation of Iran strikes and stated 'we have a deal that Iran will never have a nuclear weapon,' with diplomatic agreement documents in 'pretty final shape'
• Chip stocks rebounded strongly with the semiconductor ETF gaining 6% after a 10% decline last week; Intel received a Bank of America upgrade to Buy from Underperform
• Oil prices dropped approximately 3% (WTI to $86, Brent to $89 per barrel) as geopolitical risk premium eased; markets expect Fed to hold rates steady next week despite mixed inflation data

Market Summary: Dow Surges on Iran De-escalation, Tech Rallies

Key Market Movements:

U.S. equities posted strong gains Thursday as geopolitical tensions eased. The Dow Jones jumped 929 points (+1.84%) to 50,847.50, the S&P 500 rose 1.75% to 7,393.85, and the Nasdaq surged 2.53% to 25,801.47.

Main Catalyst:

President Trump canceled planned military strikes against Iran, announcing progress toward a diplomatic deal preventing Iran from obtaining nuclear weapons. Trump stated documents are "in pretty final shape" with a signing expected soon, though a naval blockade remains in effect.

Sector Performance:

Semiconductor stocks led the rebound with the chip ETF gaining 6%, recovering from last week's 10% decline. Major chipmakers including Nvidia, AMD, and Broadcom advanced. Intel received additional support from a Bank of America upgrade to Buy from Underperform.

Commodities:

Oil prices fell approximately 3% as tensions eased, with WTI crude dropping to around $86 per barrel and Brent to roughly $89 per barrel.

Economic Data:

Mixed inflation signals emerged as headline CPI exceeded expectations at 0.8% versus forecasts of 0.7%, while core inflation came in lighter at 0.4% versus expected 0.5%. Unemployment claims increased modestly.

Other Notable Events:

SpaceX is set to begin trading Friday after pricing its IPO at $135 per share, raising a record $75 billion through the sale of 555.56 million shares.

Fed Outlook:

Markets expect the Federal Reserve to hold rates steady at next week's meeting, with at least one 25-basis-point increase priced in before year-end.