The S&P 500 rose 0.7% Thursday, more than erasing the prior session’s loss, while the Nasdaq gained 1.2% and the Dow added 119 points as markets steadied.
Brent crude dropped 2.2% to $76.30 after Trump said the latest fighting with Iran would not lead to “long-term” military action, easing fears of a wider war.
Those fears had centered on possible disruption in the Strait of Hormuz, which could choke Persian Gulf oil flows, reignite inflation and keep pressure on central banks to hold rates higher.
AI-linked chip stocks helped drive the rebound, with Broadcom up 4% and Micron up 6.3%, while the 10-year Treasury yield slipped to 4.53% from 4.56%.
Gasoline prices still climbed overnight—AAA put regular at $3.85 a gallon, up 5 cents from a day earlier and 68 cents above a year ago—as investors also look to next week’s bank earnings.
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.