The U.S. stock market closed higher on Thursday, with all three major indices posting gains. The S&P 500 rose 1.75% to 7,394.30, the Nasdaq Composite gained 2.54% to 25,809.66, and the Dow Jones Industrial Average increased 1.86% to 50,848.75. The broad-based rally was driven by a last-minute decision by President Trump to cancel planned airstrikes against Iran, which had been a significant risk factor for the market. The move was seen as a positive development, suggesting a potential de-escalation in tensions between the U.S. and Iran. Additionally, the tech sector saw a rebound, with stocks like SpaceX and Nvidia benefiting from positive sentiment ahead of the SpaceX IPO and the broader tech sector's performance.

The market's tone was largely risk-on, with investors reacting positively to the news of the canceled airstrikes. The tech sector's rebound also contributed to the overall positive sentiment. However, the market's performance was not entirely uniform, with some chip stocks underperforming, as highlighted by a report from CNBC. The latest wholesale inflation data, which showed a slight increase in prices, also played a role in the market's movement. Despite these mixed signals, the overall tone remained positive, with the major indices closing higher. The market's reaction to the Iran situation and the tech sector's performance were the most significant drivers of the day's session.