US Stocks Surge as Trump Signals Iran Deal; Chip Shares Lead Rally

SpaceX Sets IPO Price at $135 a Share

U.S. stocks surged after President Donald Trump signaled that a peace agreement with Iran was near. Hopes that the Strait of Hormuz would remain open sent oil prices sharply lower, while SpaceX added to the upbeat tone by setting its initial public offering price at $135 a share.

On June 11, the Dow Jones Industrial Average rose 929.97 points, or 1.86%, to close at 50,848.75 on the New York Stock Exchange. The S&P 500 gained 127.31 points, or 1.75%, to 7,394.30, while the Nasdaq Composite climbed 640.16 points, or 2.54%, to 25,809.66.

Markets were tense earlier in the day as oil prices jumped after Trump made hawkish remarks on Iran. Sentiment turned in the afternoon after Trump said he had canceled plans for airstrikes on the country.

After three straight days of signaling possible strikes on Iran, Trump wrote on Truth Social that discussions with Tehran had reached the country's top leadership and secured approval. He said the planned airstrikes and bombing campaign had been called off. Later, at the White House, he said negotiations to end the war with Iran had entered the final document stage and that a signing ceremony could be held in Europe this weekend.

Expectations for an end to the war and the reopening of the Strait of Hormuz drove oil prices sharply lower. Brent crude for August delivery fell 2.92% to settle at $90.38 a barrel, while West Texas Intermediate for July delivery dropped 2.58% to $87.71. Lower oil prices eased inflation pressure and prompted buying in the U.S. Treasury market. The yield on the 10-year Treasury note fell 10 basis points to 4.45%.

Semiconductor shares, which had recently entered a corrective phase, rebounded sharply and led the broader market higher. The Philadelphia Semiconductor Index jumped about 8%, its biggest one-day gain in a year. Intel surged nearly 9% after Bank of America upgraded the stock by two notches to buy. AMD and Micron Technology also rose.

Investor enthusiasm surrounding SpaceX ahead of its Nasdaq debut also buoyed sentiment. SpaceX set its IPO price at $135 a share, valuing the company at $1.77 trillion. The company will sell 555.6 million shares in the offering, raising a total of $75 billion.

If underwriters fully exercise an overallotment option for 83.3 million shares, the proceeds would increase to $86 billion. That would be nearly triple the previous record of $29.4 billion set by Saudi Aramco in 2019, making it the largest IPO on record.

Kang Kyung-joo, Hankyung.com reporter qurasoha@hankyung.com