The S&P 500 climbed more than 1.7% on June 11, 2026, after President Donald Trump announced he would cancel planned airstrikes against Iran. The Dow Jones Industrial Average surged over 900 points, roughly 1.8%, while the Nasdaq Composite jumped approximately 2.5%.
What drove the rally
The US-Israeli conflict with Iran has been rattling markets since it began on February 28, 2026. Oil prices spiked above $95-96 per barrel during the conflict, dragging inflation expectations higher and keeping investors on edge for months.
The S&P 500 hit 7,022.95 on April 15, 2026, driven by similar optimism around peace negotiations. Every hint of de-escalation gets rewarded aggressively, which means investors have been sitting on significant dry powder, waiting for exactly this kind of headline.
The Nasdaq’s outperformance at roughly 2.5% also makes sense when you consider the mechanics. Tech and growth stocks get hammered hardest by inflation fears, and lower oil prices directly reduce those fears. When the pressure valve releases, those same stocks snap back the fastest.
