Stock Markets Surge as Trump Halts Iran Strikes, Chip Stocks Lead Rally

12 June 2026 · Source balance: Centre

U.S. stock markets rebounded sharply on Thursday after President Trump canceled planned military strikes against Iran and signaled an imminent peace deal. The S&P 500 gained 1.75%, the Nasdaq Composite jumped 2.54%, and the Dow Jones rose 1.86%, marking the best day in two months. Semiconductor stocks led the rebound, with the Philadelphia Semiconductor Index climbing 7.9%, its largest single-day gain since April 2025. Intel surged nearly 5% after a Bank of America upgrade, while Micron, AMD, and NVIDIA also posted solid gains. The rally reflects investor relief over easing geopolitical tensions and lower oil prices. However, Trump's statement that a peace deal could be signed this weekend remains subject to final document completion, and analysts caution that the gains may reverse if negotiations stall or fundamental concerns about AI valuations return to the fore. The rebound comes after semiconductor stocks suffered a sharp 10% decline on Friday amid inflation concerns and questions about whether the AI-driven rally had become stretched.