Early in the session, the Dow tumbled by as much as 1.9%, while the Nasdaq and S&P 500 slumped by up to 1.5%—their worst intraday levels in over three months. A late-day Wall Street rally followed President Trump's comments to CBS News' Weijia Jiang that the U.S. war with Iran is "very complete," with Iran lacking navy, communications, and air force, ahead of his initial 4-5 week timeline.

Trump also mentioned considering control of the Strait of Hormuz, triggering a crude oil price nosedive. Crude had spiked above $100 a barrel for the first time since 2022, hitting nearly $120, amid production cuts by Iraq, Kuwait and UAE plus Strait closures due to Iranian tanker threats causing storage shortages.

Semiconductor stocks helped lead the turnaround on Wall Street, with the Philadelphia Semiconductor Index spiking by 3.9% after tumbling by as much as 2% to a two-month intraday low. Computer hardware, networking and biotechnology stocks moved sharply higher over the course of the session, contributing to the jump by the tech-heavy Nasdaq. Airline stocks too showed substantial rebound, driving the NYSE Arca Airline Index up by 1.8%. The index plummeted by as much as 6.2% to its lowest intraday level in over three months in early trading. Oil service and healthcare stocks moved to the upside while some weakness remained visible among telecom stocks.

Asia-Pacific stocks moved sharply lower. Japan's Nikkei 225 Index plummeted by 5.2% while Hong Kong's Hang Seng Index tumbled by 1.4%. The major European markets moved downwards The French CAC 40 Index slumped by 1%, the German DAX Index slid by 0.8% and the U.K.'s FTSE 100 Index fell by 0.3%.

In the bond market, treasuries recovered from early weakness to end the day roughly flat. As a result, the yield on the benchmark ten-year note which moves opposite of its price, crept up by less than a basis point to 4.13% after reaching a high of 4.17%.