U.S. stock markets rallied sharply on Thursday, driven by reports of normalized tanker traffic through the Strait of Hormuz. The S&P 500 climbed above 7,100 for the first time, while the Nasdaq extended its winning streak to 13 sessions.
Major Indices Reach New Peaks
The Dow Jones Industrial Average rose 868.71 points, or 1.79%, to close at 49,447.43. The S&P 500 gained 84.78 points, up 1.20%, settling at 7,126.06 after breaking the 7,100 milestone. The Nasdaq Composite advanced 365.78 points, a 1.52% increase, ending at 24,468.48.
Both the S&P 500 and Nasdaq notched record highs for the third consecutive day, reflecting strong investor confidence.
Nasdaq’s Longest Rally Since 1992
The Nasdaq’s 13-day consecutive gains mark the longest such streak since 1992. The Russell 2000, centered on small-cap stocks, surged 2.11%, reaching its highest level in three months since January.
Volatility Eases Amid Geopolitical Calm
The CBOE Volatility Index (VIX), known as Wall Street’s ‘fear gauge,’ dropped to a midday low of 16.87, the lowest in about two months since February 11.
Markets reacted positively to a 10-day truce between Israel and Lebanon, alongside the Abraham Accords, which eased concerns over Iran’s full resumption of tanker passages through the Hormuz Strait. U.S. President Donald Trump emphasized, “Iran is not going to resume Hormuz cooperation again.”
Corporate leaders increasingly anticipate normalized energy supplies between the U.S. and Iran, boosting national relations.
Oil Prices Tumble, Dragging Energy Sector
Crude oil futures plunged amid the de-escalation. June Brent crude fell 9.1% to $90.38 per barrel, while May West Texas Intermediate (WTI) dropped 11.5% to $83.85.
Energy firms bore the brunt: Occidental Petroleum declined 7.34%, Enaite Holdings 7.12%, and Southwest Energy 5.09%. Exxon Mobil shed 3.65%, and Chevron fell 2.21%.
