U.S. stocks rallied hard on Thursday, June 11, shaking off a hot inflation report from the U.S. Bureau of Labor Statistics and fresh military action against Iran to close sharply higher.

The Dow Jones Industrial Average jumped 929 points, or 1.87%, to 50,848.38, climbing back above the 50,000 mark. The S&P 500 rose 1.74% to about 7,393, just shy of 7,400. The Nasdaq Composite gained 2.53% to roughly 25,806, and the small-cap Russell 2000 led everything with a 3.06% surge.

Tech, industrials, and materials drove the move, while energy, consumer staples, and real estate lagged.

Inflation Runs Hot

The rally was striking because the morning’s economic news was not good.

The Bureau of Labor Statistics reported that the Producer Price Index (PPI), which tracks wholesale prices, rose 1.1% in May, well above the 0.7% economists expected. The core reading, which strips out food and energy, rose 0.4%.

On an annual basis, wholesale inflation hit 6.5%, the fastest pace in nearly four years.

It landed a day after consumer prices were reported at a three-year high of 4.2%.

Hot inflation usually pushes the Federal Reserve away from cutting interest rates, and futures markets now lean toward a possible rate hike this year rather than the cuts investors expected in January.

Iran Deal Hopes Trump War Fears

So why did stocks climb?

The answer was Iran.

Even as explosions were reported across the country near the Strait of Hormuz and the United States carried out renewed strikes, Iranian officials signaled that a deal with Washington is close.

That hope for de-escalation outweighed the fighting itself, and traders bought the dip from Wednesday’s steep selloff.

SpaceX Becomes Wall Street’s Main Event

The bigger draw was SpaceX.

Elon Musk’s rocket company is set to make its stock-market debut on Friday on the Nasdaq under the ticker SPCX, in what is expected to be the largest IPO in history.

According to people familiar with the offering, investor demand has topped $250 billion — roughly three-and-a-half to four times the company’s planned $75 billion target.

The size has some investors worried the debut could pull money out of other stocks.

Musk is also expected to appear virtually at an ASML event to discuss Terafab, a planned chipmaking plant intended to supply Tesla and SpaceX.

Oracle Falls Despite Beating Expectations

The day’s biggest single-stock story was Oracle, which fell about 12% even though its results beat expectations.

The software giant reported fiscal fourth-quarter revenue of $19.18 billion, ahead of the roughly $19 billion Wall Street expected, with adjusted earnings of $2.11 per share versus estimates near $1.89.

What spooked investors was the spending.

Oracle said its total outlays reached $55.7 billion in fiscal 2026, above the $50 billion expected, and guided capital spending for fiscal 2027 to roughly $95 billion — about 40% higher than the $67.7 billion analysts had modeled.

The company said it plans to raise nearly $40 billion through debt and equity next year, including a previously announced $20 billion stock offering, to fund its artificial-intelligence buildout.

Oracle has signed major data-center deals with Meta Platforms and OpenAI as it pushes to compete with cloud leaders Amazon and Microsoft.

Chip Stocks Stage a Comeback

Chip stocks, which had been hammered in recent weeks, came roaring back.

Intel jumped about 10%, while Applied Materials and Arm Holdings each rose close to 8%.

On the losing side, GoDaddy slipped 2.5% and Axon Enterprise fell 2.2%.

Eyes Turn to Adobe, Lennar and RH

After the closing bell, attention turned to Adobe, which reported fiscal second-quarter results.

Wall Street looked for earnings near $5.82 per share on revenue of about $6.46 billion.

Adobe shares have fallen roughly 28% this year on fears that new AI design tools could eat into its business.

Ahead of the print, RBC Capital maintained an Outperform rating with a $350 price target, while Mizuho held a Neutral view, citing limited near-term catalysts.

Homebuilder Lennar and luxury retailer RH also reported after the close, giving investors a read on housing and high-end consumer spending.

Job Market Shows a Crack

There was one more soft spot in the data.

The Labor Department said new claims for unemployment benefits totaled 229,000 in the week ending June 6, above forecasts, a small sign of cooling in the job market even as inflation runs hot — a difficult mix for the Federal Reserve to manage.

Looking Ahead

For one day, hope for an Iran deal and excitement over SpaceX won out over rising prices and war headlines.

The real test comes Friday, when SpaceX starts trading and Wall Street finds out whether the biggest IPO ever can hold up a market that has been swinging hundreds of points a day.

JBizNews Desk — New York

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