Global financial markets showed signs of stabilization on Thursday as major stock indices rebounded and oil prices retreated following heightened tensions in the Middle East. Investors appeared to regain some confidence amid uncertainty surrounding the recent escalation involving the United States and Iran.
In the United States, the S&P 500 gained 0.8 percent, erasing losses from the previous session despite renewed U.S. air strikes targeting Iranian assets. The Dow Jones Industrial Average increased by 139 points, or 0.3 percent, while the Nasdaq composite rose 1.3 percent. The rebound came even as Iran responded to U.S. actions by targeting American allies in the region, raising concerns over potential further escalation.
Canada's S&P/TSX Composite Index rose 0.76 percent, nearly recovering from a 0.95 percent decline the day before. The materials sector showed notable strength, advancing by 3.2 percent after having been among the largest decliners on Wednesday.
Oil prices, which had surged amid geopolitical uncertainty, declined as markets digested the evolving situation. The price of Brent crude, the global benchmark, fell 2.2 percent to $76.30 per barrel, reversing much of the previous day’s spike.
The improved risk sentiment was partly supported by a slight drop in U.S. Treasury yields. The yield on the 10-year note decreased to 4.54 percent from 4.56 percent late Wednesday, easing borrowing costs and providing some relief to equity markets.
Among individual stocks, MDA Space Ltd. experienced a sharp decline, falling 8.5 percent after announcing an increase in its planned equity raise to finance an acquisition. This move introduced some investor caution despite the broader market recovery.
The market’s reaction reflects ongoing apprehension about the durability of the current ceasefire following comments from U.S. President Donald Trump that cast doubt on the temporary truce with Iran. While the situation remains volatile, Thursday’s trading suggested that investors are cautiously optimistic amid the complex geopolitical backdrop.