President Trump halted a planned strike on Iran, a move that steadied markets on Thursday. With the United States and Tehran moving toward a peace framework, the S&P 500 closed 1.8% higher, the Nasdaq rose 2.5%, and the Dow jumped 1.9% to 50,848. Oil prices and Treasury yields slipped as risk appetite returned.

Chip makers led the rally, with the PHLX Semiconductor Sector index surging nearly 8% after a week of volatility tied to AI hype. The rebound lifted names such as Intel and NVIDIA, underscoring investor confidence in the sector’s growth prospects despite earlier jitters. Meanwhile, the European Central Bank became the first major central bank to raise rates, signaling tighter monetary policy amid higher energy‑driven inflation.

Oracle’s shares tumbled 8.5% after the database and AI cloud firm posted solid quarterly numbers but warned that soaring capital expenditures and mounting debt could strain cash flow. Meta is chasing subscription fees—$4 for social upgrades, $8 for its chatbot—to offset AI costs, yet analysts doubt the pricing will generate meaningful revenue. The market closed on a mixed note, with tech gains offset by Oracle’s slide.