Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSTAN CHOE and ALEX VEIGAThu, June 11, 2026 at 3:56 AM GMT+2 4 min readNEW YORK (AP) — U.S. stocks rallied to their best day in two months, and oil prices fell Thursday after President Donald Trump called off his threat to bomb Iran in the evening. That raised hopes for a potential deal that could get the global flow of oil going again.The S&P 500 jumped 1.8%, coming off a back-to-back drop that had yanked it back to where it was in early May. The Dow Jones Industrial Average leaped 929 points, or 1.9%, and the Nasdaq composite rallied 2.5%.Stocks immediately veered higher in midday trading after Trump said on his social media network that “discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved” and that the time and place of a signing will “be announced shortly.”A deal to end the war with Iran could reopen the Strait of Hormuz and allow oil tankers to carry crude again from the Persian Gulf to customers worldwide. The price for a barrel of benchmark U.S. crude sank 2.6% to $87.71. Brent crude, the international standard, fell 2.9% to $90.38, though it’s still above its roughly $70 price from before the war.Worries had been high because the United States and Iran launched attacks over the past several days threatening a more than monthlong tenuous ceasefire.High oil prices caused by the Iran war have sent inflation painfully upward, and a report on Thursday showed that prices at the U.S. wholesale level increased by more in May than economists expected. The effect is worldwide, and the European Central Bank on Thursday became the first major central bank to raise interest rates in response.Higher rates can keep a lid on inflation. But they also slow economies and undercut prices for all kinds of investments, including stocks and cryptocurrencies. They hit investments seen as the most expensive in particular, and some critics are calling the artificial-intelligence industry a bubble where investment inflated too far.Big swings for AI stocks have been yanking the U.S. stock market up and down over the last week, as they went from roaring to records to suddenly turning lower. The big concern is whether such stocks shot too high, too fast because of AI mania, and their careening moves have sometimes reversed direction by the hour.AI stocks had already been rolling back up their roller coaster early Thursday, before Trump made his announcement on Iran.Marvell Technology climbed 11.1%. It’s coming off a manic stretch where it plunged 16.7%, soared 9.6% and then fell more than 5% for two straight days. Just before that, it had a one-day surge of 32.5% that was its best in history when Nvidia CEO Jensen Huang suggested it could be “the next trillion-dollar company.” It was worth a bit more than $190 billion at the time.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info