New york: Following US President Donald Trump's announcement to cancel planned attacks on Iran, US stock markets closed the day with sharp increases. The move, which marked a significant shift in the geopolitical landscape, triggered a positive response from investors, leading to notable gains across major indices.
According to Anadolu Agency, the Dow rose 1.86%, or 929.97 points, to finish at 50,848.75. The S and P 500 gained 1.75%, or 127.31 points, closing at 7,394.30, while the Nasdaq soared 2.54%, or 640.16 points, to 25,809.66. The Volatility Index (VIX), commonly known as the market's 'fear index,' fell 12.42% to 19.46, reflecting reduced investor anxiety following the de-escalation.
Trump announced the decision on the US-based social media platform Truth, citing high-level discussions with Iranian leadership as the reason for calling off the strikes. He stated, "Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening." This came after his earlier statement indicating plans for a significant military action against Iran.
The geopolitical relief also had an impact on energy and precious metal markets. Brent crude futures saw a decline of around 4.6% to $88.8 per barrel as of 2030GMT, as energy prices dropped following the announcement. Meanwhile, concerns over a potential conflict subsided, leading to a recovery in precious metal prices. Gold prices per ounce increased by 3.5% to $4,214, while silver gained 6.2% to $67.4.
European markets mirrored the positive trend, with the pan-European Stoxx Europe 600 index rising 0.54% to close at 621.53 points. National markets also experienced gains; the UK's FTSE 100 increased by 0.48% to 10,303.88, Germany's DAX 40 slightly rose by 0.06% to 24,209.71 points, France's CAC 40 climbed 0.48% to 8,200.80, Italy's FTSE MIB 30 went up 0.95% to 50,504.74, and Spain's IBEX 35 ended 0.81% higher at 18,290.10.