Global stock markets saw a substantial increase on Thursday and Friday, driven by U.S. President Donald Trump’s announcement that he had called off planned strikes against Iran and that a peace deal with Tehran was nearing finalization.
Wall Street Rallies
On Thursday, Wall Street’s main indices experienced their largest single-day gains since April. The benchmark S&P 500 index closed up nearly 1.8 percent, ending a three-day decline. The tech-heavy Nasdaq Composite jumped 2.5 percent, while the Dow Jones Industrial Average recorded a gain of approximately 1.9 percent.
Asian Markets Follow Suit
The positive momentum carried over into Friday’s trading in the Asia Pacific region. Markets in Japan, South Korea, Taiwan, Hong Kong, and Australia all reported gains. South Korea’s Kospi, which has been the best-performing major index this year, surged over 8 percent in morning trading. Japan’s Nikkei 225 rose as much as 4 percent, Taiwan’s TAIEX gained about 2.4 percent, Australia’s ASX 200 was up around 1.8 percent, and Hong Kong’s Hang Seng Index climbed more than 1 percent.
Oil Prices Decline
In response to the prospect of a return to normalcy in the Strait of Hormuz, a vital global energy supply route, Brent crude oil prices fell about 1 percent to below $89.50 a barrel. The strait typically carries approximately one-fifth of global energy supplies.
Investor Sentiment and Future Outlook
President Trump stated on Thursday that a settlement to end the conflict with Iran could be signed as soon as the upcoming weekend, describing it as a “great settlement” subject to final document completion. A spokesperson for Iran’s Ministry of Foreign Affairs indicated that a memorandum of understanding with the U.S. is “under consideration.”
Analysts suggest that for the market rally to continue, investors will be looking for the deal to be officially signed and for the Strait of Hormuz to fully reopen. Fabien Yip, a market analyst at IG Group in Sydney, noted that the rally reflects a significant reduction in geopolitical risk and also anticipation surrounding the market debut of SpaceX. Yip characterized the recent market movements as a healthy consolidation rather than a structural break in the bull market, potentially extending the rally’s duration.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
