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Update: Wall Street Logs Best Day in 2 Months as Trump Sparks Hope For Iran Deal

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Update: Wall Street Logs Best Day in 2 Months as Trump Sparks Hope For Iran Deal

(Updates with market moves at the end of the day and any new developments.)

US equities rallied Thursday, pushing major indexes to their best day in more than two months, while oil prices tumbled after President Donald Trump signaled a breakthrough in talks with Iran to end the war.

The Nasdaq closed 2.5% higher at 25,809.7, while the Dow Jones Industrial Average advanced 1.9% to 50,848.8. The S&P 500 climbed 1.8% to 7,394.3. All three indexes notched their biggest one-day percentage gains since April 8. Most sectors were in the green, led by materials and industrials, while energy saw the biggest drop.

West Texas Intermediate crude oil was down 4% at $86.39 a barrel in Thursday late-afternoon trade, while Brent fell 4.4% to $89.03.

Trump said on Thursday that the US "just made a great settlement of the war with Iran," subject to the "finalization of documents," CNBC reported.

A deal is expected to be signed "over the next few days," he reportedly said.

Earlier in the day, Trump canceled scheduled strikes against Iran following increased hostilities, including US strikes in response to Tehran shooting down an American Apache helicopter.

The Organization of the Petroleum Exporting Countries lowered its global oil demand growth forecast for this year, but raised its expectations for 2027.

US Treasury yields tumbled, with the 10-year rate last down nine basis points at 4.47% and the two-year rate falling 9.8 basis points to 4.06%.

In economic news, US producer prices rose more than projected in May, matching the previous month's pace, while the annual increase reached the highest since late 2022 amid surging energy costs, government data showed.

On Wednesday, consumer price data showed inflation accelerating to the fastest pace in about three years last month, reinforcing expectations that the Federal Reserve will keep interest rates on hold for some time.

"A fresh multiyear high in consumer and producer prices underscores the pain befallen on consumers resulting from disruptions in the global energy market," Stifel said in a note. "For the Fed, dangerously high levels of inflation suggest additional accommodation is off the table, at least for now."

In company news, Eaton (ETN) will combine its mobility business with auto parts supplier Dana (DAN), creating a global powertrain entity valued at more than $10 billion. Eaton shares advanced 4.8%, while Dana slumped 15%.

Oracle (ORCL) shares slumped 8.5%, the second-worst performer on the S&P 500. Late Wednesday, the cloud computing company's fiscal fourth-quarter results surpassed Wall Street's estimates, driven by rising demand for cloud infrastructure amid an artificial intelligence boom.

UBS Securities said Thursday the sell-off in Oracle's shares could be due in part to its higher-than-expected capital expenditure outlook for the year.

Gold was up 0.9% at $4,169.10 per troy ounce, while silver rose 1.9% to $66 per ounce.

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South Korea's Unemployment Rate Steady in May Amid Cost Pressures

South Korea's unemployment rate held steady at 2.9% in May, unchanged from April, amid rising inflationary pressures.On a year-over-year basis, the latest print was up 0.1 percentage point, according to the Ministry of Data and Statistics' Economically Active Population Survey published Thursday.The jobless count in May climbed 25,000 to 878,000 from the prior month, and up 3% from 853,000 in May 2025.The seasonally adjusted unemployment rate also steadied at 2.8% for a second straight month. The print was in line with the median forecast by analysts polled by Trading Economics.The economically active population fell 815,000 from April to 29.998 million, and was down 14,000 year over year. The labor force participation rate dropped 0.4 percentage point to 65.2% from 64.9% in April, and was down 0.4 percentage point from a year earlier.Total employed persons fell to 29.120 million from 28.961 million in April. Year over year, employment was down by 40,000, or 1%.The employment-to-population ratio for those aged 15 and over rose to 63.3% in May from 63.0% in April, but was down 0.5 percentage points from a year prior. The ratio for those aged 15 to 64 edged up slightly to 70.2% from 70% in April.The data comes amid rising price pressures in South Korea. Consumer prices rose 3.1% in May from a year earlier, the sharpest jump since March 2024, driven by petroleum product prices that were 24.2% up year over year.Core inflation, which strips out volatile food and energy prices, accelerated to 2.5% from 2.2% in April, marking its fastest pace since February 2024.The Bank of Korea left its benchmark interest rate unchanged at 2.50% at its latest policy meeting on May 28."Inflationary pressure has increased due to the Middle East war, growth has increased more than previously expected, supported by strong exports, and financial stability risks have still remained," the central bank said.At the time, the BOK noted that employment continued its upward trend, and is expected to improve further, supported by a strong semiconductor sector.

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Oracle Fourth-Quarter Results Top Estimates Amid Cloud Infrastructure Demand
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Oracle Fourth-Quarter Results Top Estimates Amid Cloud Infrastructure Demand

Oracle's (ORCL) fiscal fourth-quarter results surpassed Wall Street's estimates, driven by rising demand for cloud infrastructure amid an artificial intelligence boom.Revenue increased 21% year-on-year to $19.18 billion during the three months through May, above the FactSet-polled consensus of $19.1 billion. Adjusted earnings per share rose to $2.11 from $1.70 a year earlier, compared with the Street's $1.96 view.Oracle's remaining performance obligations -- future commitments arising from contractual relationships -- soared 363% year-on-year to $638 billion. The metric rose $85 billion from the end of the third quarter."The large increases in Oracle's RPO and revenue are driven by the growing demand for cloud infrastructure for AI training and inferencing," the cloud computing company said late Wednesday.Cloud sales advanced 47% to $9.91 billion, driven by a 93% jump in infrastructure to $5.79 billion. The software segment edged 2% lower to $6.82 billion.Oppenheimer recently projected Oracle's cloud infrastructure revenue to grow 96% to $5.87 billion in the fourth quarter, compared with the consensus estimate that the brokerage put at 92%.Oracle plans to to raise about $40 billion via debt and equity issuances in fiscal 2027, including its previously announced $20 billion stock sale. That follows $43 billion raised in debt and $5 billion in equity financing in the just-ended year."Oracle's capital investment program supports the pursuit of unprecedented opportunities in AI cloud infrastructure," the company said Wednesday.It does not expect to issue additional debt in calendar year 2026.Shares were down 6.3% in after-hours trading. The stock gained 3.3% so far this year through Wednesday close.The company expects reported revenue to grow by 27% to 29% in the first quarter, with cloud sales seen rising 58% and 64%. Non-GAAP EPS is expected to grow between 17% and 20%, reaching $1.72 to $1.76. Markets expect adjusted EPS of $1.68 on consolidated revenue of $19.05 billion.Oracle maintained its fiscal 2027 revenue outlook at $90 billion and raised non-GAAP EPS guidance to $8.05. Analysts expect $88.78 billion and $8.02, respectively.

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Update: Nasdaq, S&P 500 Hit 5-Week Lows Amid Re-Escalation in Middle East
US Markets

Update: Nasdaq, S&P 500 Hit 5-Week Lows Amid Re-Escalation in Middle East

(Updates with market moves at the end of the day.)The Nasdaq Composite and the S&P 500 fell to the lowest levels in about five weeks on Wednesday as renewed tensions between the US and Iran pushed oil prices higher.The Nasdaq fell 2% to 25,169.5, its lowest close since May 4. The S&P 500 lost 1.6% to 7,267, the lowest finish since May 5. The Dow Jones Industrial Average shed 1.9% to settle at 49,918.8, the lowest since May 19.Most sectors were in the red, led by industrials' 3.4% slump, while consumer staples paced the gainers.West Texas Intermediate crude oil was up 2.6% at $90.46 a barrel in late-afternoon trade, while Brent rose 2.2% to $93.42.Iran will have to "pay the price" for taking too long to agree to a peace deal, US President Donald Trump said in a social media post Wednesday.The US will resume attacks on Iran Wednesday, CNN reported, citing Trump.US forces launched airstrikes Tuesday against Iran after Tehran shot down an American Apache helicopter, Central Command said. Iran struck American military bases across Jordan, Kuwait, and Bahrain, media reports showed."With no imminent deal in sight and with the global oil market tightening significantly every day, we see upside to prices, particularly if these disruptions linger into the third quarter, a period of seasonally stronger oil demand," ING Bank said in a report Wednesday.US Treasury yields were mixed, with the 10-year rate up 2.3 basis points at 4.55% and the two-year rate little changed at 4.14%.In economic news, US annual inflation accelerated to the highest in about three years last month, fueling expectations that the Federal Reserve will keep interest rates on hold for some time."US inflation continues to vault higher on the back of swiftly rising energy prices and four months of closure of the Strait of Hormuz," BMO Chief US Economist Scott Anderson said in a report.Monthly headline and core inflation measures, however, eased."The milder rise in core (consumer price index) inflation in May will buy the Fed some time to wait a bit longer before taking any action on raising interest rates."Markets widely expect the Fed to leave interest rates unchanged next week, which would mark its fourth straight pause, according to the CME FedWatch tool.In company news, Super Micro Computer (SMCI) shares slid 28%, the worst performer on the S&P 500, as the company announced a series of concurrent equity and equity-linked financing transactions amounting to $7 billion.Casey's General Stores (CASY) shares surged 20%. Late Tuesday, the convenience store operator logged better-than-expected fiscal fourth-quarter results.Gold was down 4.2% at $4,105.10 per troy ounce, while silver fell 2.2% to $63.82.

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