Stocks jump after Trump cancels planned Iran strikes

Stocks surged after Donald Trump called off planned strikes against Iran on Thursday, backing away from earlier threats to resume military action. The move—dubbed the "TACO" trade, short for "Trump Always Chickens Out"—lifted investor sentiment and pushed oil prices lower.

At the 4 p.m. ET close, the S&P 500 was 7,394.30, up 1.75%; the Dow Jones Industrial Average stood at 50,848.75, up 1.86% (+929.97 points); and the Nasdaq 100 was 29,446.18, up 3.3%. Trump said that after discussions with "the highest level of Iranian leadership" he had canceled bombings set for Thursday evening, having earlier threatened to take Kharg Island, Iran's critical oil-export hub, in the "not too distant future." Brent fell almost 3% to $90.64 and US oil dropped 2% to $87.75.

The market followed a week of sharp volatility after a red-hot May jobs report and the hottest consumer inflation in three years.

United States, Kharg Island

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