Wall Street’s major indexes ended sharply higher on Thursday, with stocks extending gains after U.S. President Donald Trump said he canceled planned strikes against Iran, and on the eve of the market debut of Elon Musk’s SpaceX.

Hours before the expected strikes, ‌Trump said ⁠on Truth Social ⁠that negotiations with Tehran had advanced to the highest levels of Iran’s leadership and had been okayed by a broad coalition of regional powers.

Oil prices dropped sharply, while stocks added to their rebound from the prior session’s selloff. On Wednesday, major Wall Street indexes fell more than 1% and the S&P 500 Technology Index confirmed a correction.

“Our technical indicators are looking relatively oversold here,” said Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas. “Just as ⁠we had ‌gone up too far, too fast, we came down too far, too fast.”

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According to preliminary data, the S&P 500 gained 126.86 points, or 1.75%, to ⁠end at 7,393.85 points, while the Nasdaq Composite gained 637.78 points, or 2.53%, to 25,801.47. The Dow Jones Industrial Average rose 928.72 points, or 1.84%, to 50,847.50. On Thursday, SpaceX priced the biggest-ever U.S. initial public offering at $135 per share, making Musk’s rocket and spacecraft manufacturer one of the world’s most valuable companies. The IPO raised a record $75 billion on the sale of 555.56 million shares. It valued the company at $1.77 trillion, a record for an initial offering.
SpaceX shares are expected to begin trading on ‌Friday.
The S&P 500 has pulled back since hitting a record closing high in early June. The Middle East conflict has stoked inflationary pressures.

Still, Oracle shares plunged after the company projected capital spending plans ⁠for fiscal 2027 above Wall Street estimates.

Feeding inflation worries, data showed U.S. producer prices increased more than expected in May, leading to the largest annual gain in over three years.

Separately, the number of Americans filing claims for unemployment benefits increased marginally last week.

The Federal Reserve is widely expected to hold interest rates steady at its policy meeting next week, with investors pricing in at least one 25 basis point rate hike by the end of the year.

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An American favorite pizza chain is quietly disappearing from communities across the country.

Papa Johns is following through on its plan to close about 300 North American stores, with dozens of locations shuttering in the first quarter – primarily in core Sun Belt states.

A recent analysis of Papa Johns financial filings by Fast Company found that 44 stores closed across 17 states, with the highest concentration of closures in Texas, California, Florida and Arizona.

Multiple location closures have also been identified in Michigan, North Carolina and Virginia.

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The pizza brand first announced in February that hundreds of underperforming restaurants would cease operations by the end of 2027, describing the locations as being primarily franchise-owned, more than a decade old and generating less than $600,000 in annual sales volumes (AUVs).

“We believe these closures will further strengthen the system, increasing AUVs by at least 3% and improve franchisee health by allowing franchisees to reallocate resources towards operational excellence in their remaining restaurants and open units in priority markets,” Papa Johns CFO Ravi Thanawala previously said.

He also said that the majority of the company’s restaurants worldwide have “performed well over the years and delivered strong returns for both corporate and franchise owners,” and that the strategic closure of underperforming restaurants is “among the most impactful actions we can take to improve restaurant profitability and fleet health.”

However, shares of Papa Johns International were down roughly 21% year to date through Wednesday’s close. Over the past five years, shares of Papa Johns International have fallen more than 69%.

In addition to the Q1 store closures, filings showed that Papa Johns laid off 7% of its corporate workforce.

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Not only are franchisees across the fast-food industry facing severe headwinds from inflation, supply chain expenses and labor costs, but pizzerias nationwide are facing stiff competition. A recent Wall Street Journal report found that pizza restaurants are now outnumbered by Mexican restaurants and coffee shops.

Other pizza chain competitors have made strategic moves amid weakening demand, including rival Pizza Hut closing hundreds of locations and its parent company, Yum! Brands, reportedly looking into a potential sale of the chain.

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FOX Business’ Matthew Kazin contributed to this report.

NEW YORK — The Dow Jones Industrial Average rose more than 246 points on Thursday, closing at 50,165.69 as investors welcomed resilient corporate earnings and signs that inflation pressures may be moderating despite ongoing geopolitical risks.

The blue-chip index gained 246.91 points, or 0.49%, in a session that saw broad participation across sectors. The S&P 500 and Nasdaq Composite also posted gains, reflecting improved sentiment after recent volatility tied to energy costs and global tensions.

Market Drivers and Sentiment Shift

The rebound followed a string of solid earnings reports that demonstrated corporate resilience amid higher costs. Several major Dow constituents beat expectations, providing reassurance about consumer demand and operational efficiency. Traders appeared to price in the possibility of a soft economic landing, with some relief that the latest inflation data may not force more aggressive Federal Reserve tightening.

Energy stocks provided support as oil prices stabilized, while technology and consumer discretionary names recovered ground after recent weakness. Financials benefited from a more constructive outlook on interest rates, and industrial names gained on expectations of steady economic activity.

Inflation Data and Fed Outlook

The latest Consumer Price Index report showed headline inflation at 4.2% year-over-year in May, the highest reading since 2023, largely driven by energy. However, core measures remained closer to the Fed’s 2% target, giving policymakers room to assess incoming data without immediate pressure for rate hikes.

The Producer Price Index due later Thursday will offer additional insight into wholesale trends. Markets continue to price in a high probability of rates remaining steady at the June Fed meeting, with potential cuts later in the year depending on subsequent readings.

Corporate Earnings Momentum

Earnings season has provided a mixed but generally positive narrative. Companies across sectors have demonstrated pricing power and cost control, helping alleviate concerns about margin compression. Forward guidance in key areas has been constructive, with many executives citing stable demand despite higher borrowing costs.

This corporate strength has helped support equity valuations even as macroeconomic uncertainties persist. The Dow’s ability to climb back above the 50,000 psychological level earlier this year remains a significant milestone, with analysts viewing current levels as supported by fundamentals.

Sector Rotation and Leadership

Technology and communication services led gains as investors rotated back into growth names. Financials showed strength on improving net interest margin outlooks, while energy names benefited from stable oil prices. Defensive sectors such as consumer staples and healthcare provided steady support.

The session’s breadth, with more advancing than declining issues on the New York Stock Exchange, indicated healthy participation rather than concentrated buying in a few names.

Technical and Sentiment Indicators

The Dow’s move reflected improving momentum after a period of consolidation. Technical indicators suggest the index is neither strongly bullish nor bearish in the short term, with support levels holding firm.

Options activity showed reduced hedging demand, suggesting traders are becoming more comfortable with current valuations. Institutional flows appeared balanced, with selective buying in quality companies.

Global Market Influence

International markets showed mixed performance overnight, with European indexes posting modest gains and Asian markets closing mixed. The U.S. dollar traded in a tight range, reflecting balanced global risk perceptions.

Commodity prices, particularly oil, stabilized after recent volatility tied to Middle East developments. Gold prices eased slightly as risk appetite improved.

Investor Outlook and Strategy

Strategists maintain a generally constructive view for equities, citing resilient corporate profits and the potential for monetary easing later in the year. However, they caution that volatility around data releases and geopolitical events is likely to continue.

Diversified portfolios with exposure to both growth and value sectors are recommended. Focus on companies with strong balance sheets, clear growth strategies and pricing power remains key in the current environment.

Broader Economic Picture

The U.S. economy continues to demonstrate resilience despite higher interest rates and external shocks. Consumer spending has held up better than many feared, supported by a still-solid labor market and wage growth in certain sectors.

Challenges remain, including elevated housing costs and uneven recovery across income groups. The Federal Reserve’s careful approach to policy has helped maintain stability, though the path forward depends on incoming data.

Looking Ahead

Markets will continue monitoring upcoming economic releases, including retail sales and further inflation metrics. Corporate earnings season remains in focus, with additional reports expected to shape sentiment in the days ahead.

The Dow’s performance serves as a key barometer for investor confidence. Thursday’s gain reflects measured optimism as traders balance positive corporate trends with ongoing macroeconomic uncertainties.

As the trading week progresses, focus will shift to any fresh signals from policymakers and corporate boardrooms. The blue-chip index’s ability to hold recent gains will be an important technical test in the near term.

Overall, the session’s advance underscores the market’s capacity to absorb news and find buying opportunities amid a complex backdrop. Investors remain attentive to both risks and opportunities as 2026 unfolds.

The modest rebound leaves the Dow well-positioned after recent consolidation, with many analysts viewing current levels as attractive for long-term accumulation in quality names. Continued corporate resilience and potential policy support could drive further upside if inflation trends moderate as hoped.

New Delhi: The burden of adjustment in an imbalanced, conflict-ridden world should not fall disproportionately on countries in the Global South that don’t drive these imbalances, finance minister Nirmala Sitharaman said on Thursday.

India, like many developing economies, “remains largely peripheral to both the origination and propagation of global imbalances; yet, we continue to face their spill-over effects”, the minister said.

Sitharaman made the statements while representing India at a virtual meeting on the Global Convergence for Growth Summit, presided over by French President Emmanuel Macron, the finance ministry said in a post on microblogging site X.

“In today’s interconnected world, prosperity and challenges are shared, but the consequences of conflicts and uncertainty fall disproportionately on developing countries and the Global South. The situation demands coordinated global action,” the minister said during her intervention at the summit.

“We must strengthen multilateral cooperation to build resilient economies, accelerate sustainable development and ensure inclusive growth that benefits all,” she added.

The summit was held to bring together leaders of advanced and emerging economies to deliberate on ways to support a balanced and efficient global framework. The senior leadership of all the G7 nations and India, Brazil, China, Kenya, South Korea and the International Monetary Fund participated in the summit.
Making her observations on global imbalances, the minister said: “Not all imbalances are alike, some reflect differences in demographics, development stages, resource endowments, or economic structures.””Our focus should, therefore, remain on excessive and persistent imbalances while recognising that the scale of domestic needs varies significantly across countries,” she said.

Medium-term growth, MDB reforms
India’s growth is projected to remain strong at about 7% over the medium term, the minister said, stressing that the country remains the world’s fastest-expanding major economy.

The country’s growth is primarily led by domestic demand, with a largely market-determined exchange rate, she added.

Sitharaman called for better, bigger, more effective and more representative multilateral development banks (MDBs) that can deliver greater financing to developing countries and emerging economies. Bolstering their financing capacity, operational agility and responsiveness will be critical, she said.