Stock Market Today: Dow Jumps 423 Points as Trump Eases Iran Fears, Oil Retreats; S&P 500 Snaps Losing Streak
New York, Oct. 9, 2026 — U.S. stocks closed sharply higher on Friday, with the Dow Jones Industrial Average surging more than 400 points, as President Trump’s pledge to avoid military action against Iran before next month’s midterm elections calmed oil markets and revived investor risk appetite.
The Dow Jones Industrial Average rose 423.31 points, or 0.83%, to close at 51,654.95. The S&P 500 gained 46.18 points, or 0.59%, to 7,811.54, snapping a two-day losing streak and finishing just 0.09% below its record close. The Nasdaq Composite climbed 172.83 points, or 0.64%, to 27,366.17.
All three major indexes closed the week higher: the S&P 500 added 1.15%, the Dow gained 0.9%, and the Nasdaq advanced 0.64%, marking its fourth consecutive weekly gain.
Why Did the Stock Market Rise Today?
Friday’s rally was driven by two primary catalysts:
1. Trump eases Iran tensions, oil retreats. President Trump said Thursday that the U.S. will not attack Iran before the November 3 midterm elections, adding that Washington and Tehran are engaged in “productive discussions”. The comments pulled Brent crude down 0.45% to around $103 per barrel, easing the inflation concerns that had pressured stocks earlier in the week. Lower oil prices reduce input costs across the economy and help keep rate-hike expectations contained.
2. Rate hike odds remain subdued. According to the CME FedWatch Tool, markets currently price just 19.4% odds of a 25-basis-point rate hike at the October 28 Fed meeting, down sharply from earlier in the week. The 10-year Treasury yield held steady around 5.25%, well below Wednesday’s 24-year high of 5.364%.
Which Sectors and Stocks Led the Rally?
Ten of the S&P 500’s eleven sectors closed higher, with real estate and consumer discretionary leading gains of over 1% each. Megacap growth stocks powered the advance: Amazon climbed 2.8%, Microsoft rose 2.2%, and Tesla gained 2.1%.
Humana surged 12.5% after U.S. government data showed 95% of the health insurer’s members were in Medicare Advantage plans rated four stars or higher for 2027. Palo Alto Networks gained 5.1%, Palantir Technologies rose 5.2%, and SpaceX added 1.1% after striking a deal to acquire a nationwide low-band spectrum portfolio.
Telecom stocks suffered historic losses. The S&P 500 telecom services index plunged 9.7%, its worst single-day drop since March 2020, after SpaceX’s spectrum deal posed a direct challenge to U.S. wireless giants. T-Mobile US plummeted 12.2% to its lowest level since December 2023, AT&T fell 9.7%, and Verizon dropped 9.1%.
Apple declined 1.7% after reports that the iPhone maker told suppliers to cut component production for its newly launched iPhone 18 Pro and Pro Max models due to weaker-than-expected demand and soaring memory chip costs. Delta Air Lines fell about 2% after cutting its annual profit forecast by nearly a quarter at the midpoint.
What Is the VIX (Fear Index) Saying Today?
The CBOE Volatility Index (VIX) declined to approximately 15.01, down 3.29% from Thursday’s close, signaling that market anxiety eased significantly as oil prices retreated and rate-hike fears subsided.
What’s Next for Investors?
Attention now shifts to the third-quarter earnings season, which kicks off Tuesday with JPMorgan Chase and other major banks. Wall Street remains optimistic that robust corporate results could sustain the rally despite geopolitical uncertainty and elevated Treasury yields.
Investors will also receive a major inflation update next week with the release of the Consumer Price Index (CPI), which could influence the Fed’s policy path ahead of its October 28 meeting.
Key Takeaways (Quick Summary)
- Dow jumped 423 points to 51,654.95; S&P 500 and Nasdaq also closed higher.
- Trump’s pledge to avoid Iran strikes before midterms pulled oil lower, easing inflation fears.
- 10-year Treasury yield held at ~5.25%, below Wednesday’s 24-year high.
- Telecom stocks collapsed: T-Mobile -12.2%, AT&T -9.7%, Verizon -9.1% on SpaceX spectrum deal.
- Apple fell 1.7% on iPhone 18 production cut reports.
- All three indexes closed the week higher; Nasdaq posted its fourth straight weekly gain.
- Q3 earnings season begins Tuesday with major banks reporting.
