Dow, S&P 500, Nasdaq Rise as Middle East Tensions Ease; SpaceX Jumps 19.34% in IPO Debut

Wall Street's three main indexes closed higher on June 12 as hopes for a US-Iran agreement to end their conflict and a strong stock-market debut by SpaceX lifted sentiment.

The Dow Jones Industrial Average rose 353.51 points, or 0.7%, to 51,202.26. The S&P 500 gained 37.15 points, or 0.5%, to 7,431.46, while the Nasdaq Composite added 79.18 points, or 0.31%, to 25,888.84.

Easing geopolitical tensions buoyed broader risk appetite. The US and Iran were reported to be nearing a provisional agreement focused on ending their military conflict and reopening the Strait of Hormuz.

The two sides could sign a memorandum of understanding during next week's Group of Seven summit.

The news sent oil prices down more than 3%. Brent crude for August settlement fell 3.37% to $87.33 a barrel, its lowest since March 5, early in the war.

West Texas Intermediate crude for July delivery dropped 3.23% to settle at $84.88 a barrel, the lowest since April 17. Lower oil prices also helped support equities by easing inflation concerns.

The day's biggest talking point was SpaceX, the space company led by Elon Musk. SpaceX, which drew attention as the largest initial public offering on record, ended its first trading day at $161.11 a share, up 19.34% from its offering price.

Individual stocks turned in a mixed performance. AMD rose more than 4% after Citigroup upgraded the semiconductor company to buy and raised its price target. Nvidia, which had surged in recent sessions, was little changed, while Microsoft and Amazon edged lower.

As demand for safe-haven assets eased, US Treasury yields moved higher. The 10-year Treasury yield rose 2 basis points to 4.48%. A preliminary June reading of the University of Michigan's consumer sentiment index came in at 48.9, rebounding from the previous month's record low and adding to upward pressure on yields. The dollar index and spot gold prices were little changed.

Mark Klein, chief executive officer of SuRo Capital, said the IPO parade appeared to be regaining momentum after a pause. He added that SpaceX's successful debut would serve as a benchmark for market-leading companies preparing to go public.

Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com