The Dow Jones Industrial Average led the charge, climbing 1.08% to 52,177.69, a gain of roughly 556 points from its previous close. The S&P 500 added 0.33% to 7,744.06, moving back within striking distance of its 52-week high of 7,844.52. The Nasdaq Composite lagged, up a modest 0.08% to 26,713.03, as investors appeared to rotate out of high-growth tech names and into more defensive, economically sensitive sectors that benefit from reduced geopolitical risk.
The comments from Trump come as Washington reportedly weighs additional strike options against Iran, a signal that tensions in the region remain unresolved even as the president sought to draw a clear line around how far the U.S. is willing to go. Markets have been on edge for weeks over the potential for an escalating confrontation to disrupt global energy supplies, particularly through the Strait of Hormuz, a critical corridor for oil and gas shipments. Any reassurance that the conflict will stay contained tends to ripple quickly through equity markets, which had priced in a measure of uncertainty around the standoff.
Energy markets and industrial stocks, which are especially sensitive to shifts in Middle East risk, appear to have been the primary beneficiaries of Thursday's rally, helping explain the Dow's outsized move relative to the tech-heavy Nasdaq. Lower perceived odds of a disruption to oil flows through the Gulf region can ease pressure on fuel costs and shipping routes, a dynamic that matters broadly for transportation, manufacturing and consumer companies.
Still, the statement does not eliminate the underlying uncertainty. Reports that the U.S. is considering new strike options suggest military action in some form remains on the table, even without nuclear weapons or American soldiers on the ground. Investors will be watching closely for any follow-up developments, including how Iran responds and whether shipping activity in the Strait of Hormuz continues without further incidents, after attacks on vessels in the area already unsettled global trade routes this week.
With the S&P 500 just over 1% below its all-time high, the market's reaction suggests traders are cautiously optimistic that the worst-case scenarios are off the table for now. But with geopolitical risk still simmering and the Federal Reserve's policy path also in focus, Thursday's gains could prove fragile if new headlines shift the calculus again.