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Markets shake off Iran shadows: tech roars, gold shines as de-escalation hopes fuel rally
NEW YORK – US equities surged again on Thursday as traders leaned into a simple idea: the Iran risk may be peaking. Meanwhile, a fresh burst of appetite for big tech and chips did the heavy lifting, with volatility deflating fast.
The S&P 500 jumped 2.9% to 6,528.52, while the Nasdaq Composite rallied 3.8% to 21,590.63. However, the most telling move sat in the fear gauge. The VIX sank 17.5% to 25.25, flipping the mood from hedged and jumpy to risk-on and almost breezy.
The spark came from President Trump, who told reporters at an Easter brunch that the US was “sort of pretty much winding that up” in Iran. Therefore, desks that had spent days paying up for protection began unwinding it. Iranian President Masoud Pezeshkian also talked up a “necessary will” for peace, provided guarantees follow. As a result, the market started to price an off-ramp rather than a long grind.
Oil behaved, which helped everything else behave. Crude hovered near $100 a barrel, easing fears of an abrupt jump to $110 amid renewed talk of the Strait of Hormuz and an April 6 deadline. Meanwhile, defence names and energy lagged as traders rotated away from the war-trade and back towards growth.
Chip stocks take the wheel
Semiconductors led from the front. Micron (MU) ripped higher, and Western Digital surged with it, as investors returned to the AI infrastructure script. Nvidia (NVDA) rose alongside ARM and Microsoft, while mega-cap tech broadly joined the move, including Amazon, Meta, and Alphabet.
Importantly, the rally did not feel like a thin chase. Instead, it looked like a positioning reset, with geopolitics fading a notch and earnings optimism returning. Traders pointed to expectations of 13.5% US earnings growth in 2026, far above 8.7% for EAFE, with productivity gains doing some work against inflation.
Gold keeps running, copper turns lively
Even as equities celebrated, gold did not get the memo to stop acting like a hedge. Gold tracked a fourth straight advance and held near $4,759, buoyed by a softer dollar and familiar rate-cut chatter. Meanwhile, copper flipped bullish, touching about $5.25 per pound on China demand hopes and supply friction tied to Chile, a move that left aluminium looking comparatively flat-footed.
Crypto also stabilised. Bitcoin held around $68,800, up roughly 0.9%, which supported proxies like MicroStrategy (MSTR) amid ongoing deal talk in crypto equities. Therefore, risk appetite expressed itself across multiple lanes, not just the Nasdaq tape.
Gaps, momentum, and the next test
With volatility dropping, premarket gap-watch returned to the daily routine. Names like SQX and GSAT drew “gap-and-go” attention on news flow, although those trades can turn quickly when early buyers run out. Meanwhile, copper-linked vehicles such as COPX and AA attracted fast money, and chip leaders like NVDA and MU became obvious dip-buy candidates for trend followers.
However, a calmer headline tape does not mean an easy one. Bank earnings sit near the front of the April calendar, and traders will watch credit quality and consumer spending comments closely, especially with tax-season distortions in the mix. As yields stay firm, bonds could still act as a brake if inflation worries reassert themselves.
By the numbers
- S&P 500: +2.9% to 6,528.52
- Nasdaq: +3.8% to 21,590.63
- VIX: -17.5% to 25.25
- WTI crude: near $100, with $110 tail-risk talk fading
- Gold: near $4,759, four-day rise
Key takeaways
- Volatility fell faster than prices rose, which signalled hedge unwinds, not just optimism.
- Chips drove breadth, so watch MU and NVDA for follow-through or failed breakouts.
- Oil staying near $100 kept risk appetite intact, so a sudden spike could reverse flows.
- Gold strength alongside stocks suggests traders still want insurance.
- Into bank earnings, expect sharp moves if guidance clashes with the soft-landing script.
