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In a move reflecting the high sensitivity of global markets to Middle East geopolitical tensions, US stocks surged as the immediate threat of military confrontation receded. The Dow Jones Industrial Average jumped nearly 800 points following President Trump's decision to call off impending military strikes against Iranian assets. Semiconductor stocks also staged a powerful rebound, recovering from weeks of intense declines triggered by geopolitical uncertainty and its potential impact on global supply chains.
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Sign InThis relief rally comes as markets monitor growth-sensitive sectors, with the Philadelphia Semiconductor Index (SOX) rising over 3% per market data as risk premiums compressed. Compared to last week's performance, analysts note this surge represents one of the largest single-day gains for major indices in months, fueled significantly by short-covering activity that had built up on fears of an imminent kinetic conflict.
Looking ahead, traders are watching for price consolidation following the strong close on June 11, 2026. According to the economic calendar, key upcoming catalysts include a speech by the Fed's Barr on June 6 and the OPEC meeting on June 7, both of which will be critical in shaping monetary policy expectations and energy price trends now that immediate military risks have stabilized.