Dow Surges 850 Points as US-Iran Talks Ease Risk

U.S. equities surged broadly on Thursday, with the Dow Jones Industrial Average jumping roughly 850 points while the S&P 500 and Nasdaq Composite each closed at record highs for the third consecutive session. The rally extended a run that has pushed major benchmarks to successive all-time highs as geopolitical risk premiums ease. Diplomatic momentum between the United States and Iran provided the session's primary macro catalyst, with progress in negotiations reducing the perceived probability of a military escalation that could disrupt global energy supply chains. Lower geopolitical tension typically compresses the risk premium embedded in oil prices, which in turn reduces input cost pressure across transportation, manufacturing, and consumer-facing sectors, supporting broader equity valuations. Investors will be watching for concrete developments from U.S.-Iran talks that could lock in or reverse the current risk-on sentiment, as any negotiating breakdown would likely reprice energy markets and dampen equities quickly.