Indexes

Thursday reversed Wednesday almost line for line. Word that Washington and Tehran are closing in on an agreement sent buyers back into everything the war had punished, and the advance picked up speed in the afternoon when President Donald Trump canceled the strikes planned for Thursday evening. A hotter-than-forecast wholesale inflation report barely slowed the move.

Sector Heat Map

The rotation ran straight back out of the bunkers and into the cyclical groups that had spent two days on sale.

Three offense groups gained more than 3%, while Wednesday's two big defensive winners, staples and energy, finished red and utilities barely held green, a near-inversion of the crowding that ruled the middle of the week.

In the News

Drivers

Friday opens with the largest IPO in history and could close with a signed deal in the Gulf.

1. SpaceX's first trade. The largest stock offering in history begins trading on the Nasdaq Friday morning at a $135 price that values the company near $1.77 trillion, with roughly 30% of the $75 billion deal in retail hands, the biggest individual-investor allocation an IPO has carried, per CNBC. The debut doubles as a referendum on risk appetite at the end of a week that repriced AI capital spending twice. Demand ran several times the supply; how much of it follows through at the opening print?

2. Whether the Iran agreement actually gets signed. Axios reports a deal could be inked as early as this weekend, and Thursday's session already moved a long way toward pricing it: crude at $86.33 has unwound most of the strike-week spike, and the indexes have recovered the bulk of Wednesday's damage. Positioning now leans toward de-escalation, so a snag in the final points, the kind a senior Iranian official hinted at by noting nothing is signed, would hit a market that has stopped hedging for one.

3. The consumer, three ways. The University of Michigan's preliminary June sentiment index lands Friday morning from near record lows, Lennar hosts its earnings call at 11 AM ET, and RH's report gives the high-end read on housing demand.

SPY daily: Thursday's rally lifted the index ETF off its 50-day average and back toward the 20-day overhead.

Intel daily: two big up days in one week bracket the chip group's selloff and recovery.

Oracle daily: the earnings gap erased the spring's gains and left the close resting on the 50-day line.

Adobe daily: a fresh 52-week low into the report, with further pressure in late trading.

Rates, FX, Commodities

Treasuries rallied across the curve as the oil collapse drained the energy fear out of the long end.

The 2s10s gap narrowed to 31 basis points as the long end, which had carried the inflation worry all week, led the move lower in yields.

Crude gave back in one session most of what two days of strikes had added, with both benchmarks down more than 4% once the strike cancellation made the negotiating track look real. Gold told the stranger story: it sat near $4,100 through the morning, then jumped about $130 in the early afternoon as yields slid and the dollar softened. A metal that fell through a month of escalation has now rallied hardest on the day peace came into view, which says the trade is about interest rates, not the war.

Technicals

The S&P 500's bounce off the 50-day average is now confirmed: Wednesday's close sat within 1% of that line near 7,231, and Thursday's 7,394.30 finish leaves the index about 1% beneath the 20-day at roughly 7,469, the first ceiling on the recovery. The Nasdaq 100 closed at 29,446.18 with its own 20-day near 29,638 directly overhead and the 50-day back at 27,907. In Treasuries, the 10-year's retreat to 4.46% widens the distance from the mid-May peak at 4.67%, and the 2-year at 4.15% per Trading Economics stays near the floor of its one-month span. Micron supplied the day's defining chart, an opening gap that never filled and kept building.

Micron, hourly: the gap held from the opening minutes and widened into a $995.87 close, up 11.7%.

Breakouts & Breakdowns

Breakouts

Caterpillar (CAT) — the 50-day average near $847 held Wednesday's test, and Thursday's 4.8% recovery carried the stock back through the 20-day line near $893 to a $897.63 close. Next overhead is the early-June peak near $940.

Intel (INTC) — closed back above its 20-day average near $113 at $116.96, recovering the line it lost in the semiconductor selloff. The spring closing high at $129.44 is the next reference overhead.

Breakdowns

Chevron (CVX) — surrendered the 20-day and 50-day cluster near $188.40 it had reclaimed a day earlier, closing at $185.82 as crude sank 4%. Below the cluster, the late-May closing low near $182 is the next support.

Coca-Cola (KO) — slipped 1.3% to $82.53, retreating toward the $82 shelf it broke out from on Wednesday. This is a test rather than a confirmed loss; a close under $82 would unwind the week's defensive breakout.

Top Movers

Gainers

Micron (MU) surged 11.7% to $995.87, leading the semiconductor rebound out of two days of AI-funding anxiety. Nothing in the company's filings changed; what changed was the appetite for the group, and Micron remains the market's preferred expression of a memory cycle in which 2026 high-bandwidth output is already sold out under multi-year contracts. The May record at $1,079.57 is the remaining overhead reference.

Intel (INTC) jumped 9.3% to $116.96 after Bank of America upgraded the shares to Buy from Underperform, an endorsement that lands days after a report that Google ordered more than 3 million Tensor processors from Intel's foundry for 2028. The stock has nearly tripled in 2026, and the upgrade puts a major bank behind the idea that the foundry turnaround is durable rather than episodic.

United Airlines (UAL) climbed 9.6% to $112.61 and Delta Air Lines (DAL) rose 7.0% to $81.83 as a 4% drop in crude repriced summer fuel bills for the second time this week, this time in the carriers' favor. The pair had lost a combined 11% on Wednesday's oil spike, so two sessions produced a full round trip, and the group is trading as a pure oil derivative for now.

Navan (NAVN) added 8.4% to $22.63, extending Wednesday evening's earnings pop as at least two firms lifted their price targets to $30, per Benzinga.

Losers

Oracle (ORCL) fell 8.5% to $184.10, recovering from a 12.6% morning loss, as the market spent a full session digesting the fiscal 2027 spending plan it disclosed Wednesday evening. The quarter itself beat on revenue and earnings; the objection is a capital budget of up to $95 billion funded partly with new debt and stock, and Thursday's partial recovery suggests some buyers see the $638 billion contracted backlog as worth the dilution risk once the price fell far enough. The close landed almost exactly on the 50-day average, the line that has defined the stock since spring.

Adobe (ADBE) dropped 6.2% to $218.80, a 52-week-low close, as sellers front-ran the quarterly report due after the bell; the results and a surprise CFO exit then sent the shares down another 5% in late trading. Details are in the earnings section below.

Key Macro Data Today

Wholesale prices repeated Wednesday's consumer-price pattern: a hot headline built almost entirely on energy, with the Bureau of Labor Statistics attributing nearly 80% of the monthly advance to a 2.8% jump in goods prices while services rose just 0.3%. The annual core reading at 4.9% came in half a point below forecast, and with new unemployment filings at their highest since March, the package gave rate markets enough cover to let yields fall on a day stocks rallied. Next week's Fed meeting now arrives with the data pointing in both directions at once.

Notable Earnings This Session

All of the day's earnings weight sat in the evening slate.

Pre-Open

The morning calendar was empty of index-moving names, leaving the session to the macro releases and the headlines.

Post-Close

Adobe (ADBE) reported a second quarter that beat on both lines, with adjusted earnings of $5.96 a share against the $5.81 consensus and revenue of $6.62 billion versus $6.45 billion expected, and raised its full-year revenue outlook to $26.5 billion to $26.6 billion. The stock still fell about 5% in late trading: CFO Dan Durn is departing on June 15, per TheFly, and management said a strategic shift toward freemium customers in Acrobat and Firefly will slow second-half recurring-revenue growth. A beat-and-raise that loses its finance chief in the same release reads very differently from a clean one.

Lennar (LEN), which rose 5.7% to $94.95 in the regular session as yields fell, released results after the close with its conference call set for Friday morning; the shares were close to their closing level in the first after-hours prints. RH (RH), which rose 7.2% to $159.32 in the regular session, rounds out the evening, with the consensus calling for a loss of $2.07 a share, per TheFly.

What Drove the Tape

One headline sequence ran the whole session. Overnight word that the latest US strikes were complete and that Qatari mediators had carried a proposal out of Tehran opened the market higher, and neither a 6.5% annual producer-price reading nor a midday threat from President Trump to seize Kharg Island stalled the advance for long. The afternoon delivered the payoff: Trump canceled the evening's planned strikes, said an agreement had been approved in detail by all parties, and the S&P 500 accelerated to a 1.75% gain while crude finished 4% lower. Treasuries amplified the move, the 10-year yield falling eight basis points as cheaper oil subtracted from every forward inflation estimate. Semiconductors led the recovery with an 8% gain in the sector index, per CNBC. The quiet warning came after hours, where Adobe became the third company in three days to learn that good quarterly numbers no longer buy forgiveness for a complicated story.