S&P 500 futures rise 0.7% as SpaceX IPO, Iran deal fuel rally

S&P 500 futures climbed 0.7% and Nasdaq 100 futures added 0.6% after SpaceX's record $75 billion IPO and a US-Iran peace deal that could reopen the Strait of Hormuz.

"The sheer scale of the SpaceX offering is unprecedented, but the added equity supply can cause some indigestion," said Douglas Beath, global equity strategist at Wells Fargo Investment Institute. "Household equity exposure already sits close to an all-time high, which suggests they may sell existing holdings to fund these new positions."

The rally extended a Thursday session where the Nasdaq Composite surged 2.54% to 25,809.66, the S&P 500 gained 1.75% to 7,394.30, and the Dow Jones Industrial Average rose 1.86% to 50,848.75. Chip stocks led the rebound, with SanDisk jumping 14.5% to an all-time high on AI-related demand and KLA Corp. adding 12.9% after analysts raised price targets on wafer fab equipment orders. The 10-year Treasury yield held near 4.55%, while Brent crude fell more than 1% to around $89.17 a barrel after Iranian state media reported the draft peace deal includes a US commitment to lift oil sanctions.

The dual catalysts could reshape portfolio positioning heading into the second half. The Iran deal, which Trump said could be signed as soon as Sunday in Switzerland, removes a key geopolitical risk that has kept oil prices elevated. Meanwhile, SpaceX's listing at a $1.77 trillion valuation forces index funds to consider how to absorb the largest IPO in market history — the company raised $75 billion by offering 555.6 million shares at $135 each, more than triple the $22 billion Alibaba raised in its 2014 US debut.

Asian markets rallied on the news, with South Korea's Kospi surging more than 8%, Japan's Nikkei 225 gaining 4%, and the Shanghai Composite rising more than 1%. European shares also jumped, with the pan-European Stoxx 600 adding 1.8% in morning trade. The broad advance reflected relief that a US military strike on Iran had been averted and that the Strait of Hormuz — through which about a fifth of global oil passes — would remain open.

Trump said in a post on Truth Social that the deal had been "approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others," adding that a naval blockade would remain in place until the transaction is finalized. Iranian state media confirmed the draft memorandum includes a US commitment to lift oil sanctions in exchange for Iran reopening the strait.

On the losing side, Oracle fell 8.5% after mixed fiscal fourth-quarter results and a heavier focus on future AI infrastructure spending, while Adobe declined 6.3% after second-quarter earnings and buyback updates failed to lift sentiment. The University of Michigan's consumer sentiment index for June, due later Friday, will provide the next catalyst for markets.

This article is for informational purposes only and does not constitute investment advice.