US stock market today: Wall Street rebounds as oil slides after US-Iran deal; S&P 500, Nasdaq rise over 1%

The US equity market demonstrated broad-based recovery on Thursday, with the S&P 500 and Nasdaq both climbing over 1% following a confluence of favorable macroeconomic signals. The rebound reflects investor rotation toward risk assets as immediate headwinds receded, particularly driven by commodity repricing and fixed-income stabilization.

The primary catalyst appears to be oil price weakness stemming from perceived de-escalation in US-Iran tensions. Declining energy prices reduce inflationary pressures and lower input costs for downstream industries, creating a positive feedback loop for growth-sensitive sectors. Treasury yield compression simultaneously eased refinancing anxiety and supported equity valuations by reducing discount rates on future cash flows.

Cyclical beneficiaries including airlines like AAL and technology leaders likely outperformed, as lower rates amplify the attractiveness of growth trajectories while cheaper energy improves operational margins. The synchronized rally across both indices suggests broad participation rather than isolated strength, indicating genuine sentiment improvement rather than sector-specific rotation.

Sector implication: Energy stocks faced headwinds from the oil decline, offsetting gains elsewhere. Tech and communications sectors benefited most from yield compression, while consumer-oriented equities gained from improved cost structures and reduced recessionary tail risk.