Brent crude dropped 2.1% to $76.39 on Thursday while the S&P 500 climbed 0.7%, extending a market rebound as traders dialed back immediate fears of a wider Iran war.
Trump's comment that the latest fighting would not become "long-term" military action helped calm markets, even after new U.S. airstrikes on Iran and Iranian strikes on U.S. allies.
AI-linked chip stocks added support: Micron jumped 6.8% after citing surging memory demand, the Nasdaq rose 0.9%, and the 10-year Treasury yield eased to 4.54% from 4.56%.
Oil still remained above last week's $71.80 level, keeping inflation concerns alive; AAA said average U.S. regular gasoline rose a nickel overnight to $3.85 a gallon, 68 cents above a year ago.
The market's next test is earnings season, with major U.S. banks due next week as investors look for profit growth strong enough to justify elevated stock prices.
Why is the AI-fueled stock market booming while rising gas prices squeeze consumers and major brands like PepsiCo?
Can new frontiers like space-based manufacturing secure a definitive technological advantage for America in its 'chip war' with China?
As chip giants invest billions to dominate AI, is the industry heading for a massive supply glut and an inevitable market crash?
Ceasefire Collapse: U.S.-Iran Conflict Sends Dow Down 576 Points, Oil Up 5%, and Sparks Global Economic Turmoil
Overview
On July 8, 2026, the U.S.-Iran ceasefire collapsed, immediately triggering significant volatility in global financial markets. Investor sentiment quickly turned negative, leading to broad declines in major stock indices like the Dow Jones and S&P 500, while the Nasdaq managed a slight gain. Energy markets reacted sharply, with crude oil prices surging due to fears of disrupted supply. This spike in oil prices fueled inflation concerns and affected currency markets, especially for countries reliant on energy imports. The sudden escalation highlighted the deep connection between geopolitical tensions and economic stability, forcing investors and policymakers to reassess risks and strategies.