Nasdaq Soars 1.91% to 26,517.93, Intel Jumps 10.6% on Trump's Apple Partnership Claim; S&P 500 and Dow End Week Higher

Mumbai, June 19: The Nasdaq Composite led a broad market rebound on Thursday, surging 1.91% to close at 26,517.93, as semiconductor stocks staged a powerful recovery following Wednesday’s Federal Reserve-induced selloff. The benchmark S&P 500 advanced 1.08% to finish at 7,500.58, while the Dow Jones Industrial Average edged up 0.14% to 51,564.70, sealing weekly gains across all three major indices. 

Trading volumes remained elevated, with the Nasdaq recording 17.43 billion shares changing hands, well above its average of 9.41 billion. The rally was fuelled by optimism over an interim U.S.-Iran peace agreement and President Donald Trump’s social media claim that Apple had agreed to partner with Intel on U.S.-based chip design and manufacturing.  

Both the NYSE and Nasdaq will be closed on Friday, 19 June, in observance of the Juneteenth federal holiday, with bond markets also shut. Regular trading resumes on Monday, 22 June. 

Nasdaq Surges 1.91% to 26,517.93 as Chip Stocks Lead Broad Rebound 

The tech-heavy index recovered sharply from Wednesday’s 1.4% decline, which had been triggered by hawkish signals from the Federal Reserve. Thursday’s advance pushed the Nasdaq’s weekly gain to 2.4%, marking its best weekly performance in over a month. The index traded within a daily range of 26,188.69 to 26,559.74, staying well above its 52-week low of 19,334.98. 

The Philadelphia Semiconductor Index (SOX) soared 6.42% to a record 14,341.78, underpinning the Nasdaq’s outperformance. Among the top gainers on the Nasdaq 100, Sandisk Corporation led with a 12.52% surge to 2,203.97, followed by Intel’s 10.68% jump to 134.03 and KLA Corporation’s 9.51% rise to 261.42. Micron Technology advanced 9.12% to 1,138.33, while Marvell Technology climbed 7.67% to 311.75. Monolithic Power Systems gained 7.58% to 1,558.02, and Texas Instruments rose 6.86% to 322.60. 

Intel Jumps 10.6% to 134.03 After Trump Claims Apple Partnership Deal 

Shares of Intel Corporation (INTC) surged 10.6% to close at 134.03, approaching record highs, after President Trump posted on Truth Social that Apple had “agreed to work with Intel to design and build its Chips in America.” Neither company has issued an official statement confirming the president’s claim. 

The chipmaker, headquartered in Santa Clara, California, is a leading designer and manufacturer of semiconductors and computer processors. Intel’s stock has rallied more than 450% over the past 12 months, driven by improved business performance and optimism about its foundry business, which manufactures chips for other firms. The stock hit an intraday high of 135.48, its best level since April, when it surpassed record highs that had stood since 2000. 

Wall Street analysts have expressed some caution about the stock’s valuation, with the mean price target compiled by Visible Alpha standing at approximately $110, below yesterday’s closing price. Intel had no comment on Trump’s message, and Apple did not respond to requests for comment. 

Also Read: How to Invest in the US Stocks From India?

S&P 500 Adds 1.08% to 7,500.58 as Energy, Tech Sectors Diverge 

The benchmark S&P 500 closed at 7,500.58, gaining 80.48 points on volume of 6.31 billion shares. The index traded between 7,468.32 and 7,511.07, staying within its 52-week range of 5,943.23 to 7,620.90. The weekly gain of 0.9% marked a recovery from yesterday’s sharp losses. 

Sandisk Corporation topped the S&P 500 gainers with a 12.42% rally to 2,202.09, followed by Corning’s 11.45% surge to 195.49 and Super Micro Computer’s 10.76% jump to 30.77. Intel and KLA Corporation also featured among the top performers. Technology and communication services led sector gains, while energy stocks lagged as crude oil prices tumbled following the U.S.-Iran peace deal. 

On the losing side, Accenture plc (ACN) plunged 18.03% to 127.88 after reporting mixed quarterly results and announcing plans to acquire three cybersecurity firms. Cognizant Technology Solutions fell 10.55% to 43.67, while Kroger Company dropped 8.39% to 56.63 after its CEO warned that operating costs were growing faster than sales. 

Dow Jones Closes at 51,564.70 as Caterpillar, Disney Lead; IBM, J&J Weigh 

The blue-chip Dow Jones Industrial Average added 72.15 points to finish at 51,564.70, marking a weekly gain of 0.7%. The index traded between 51,554.53 and 51,949.26 and remains within its 52-week range of 41,981.14 to 52,281.19. 

Caterpillar Inc (CAT) led the Dow gainers with a 3.52% advance to 989.58, followed by Walt Disney Company’s 2.96% rise to 103.84 and Amazon.com‘s 2.82% climb to 244.20. Nvidia added 2.66% to close at 210.09. The industrial and consumer discretionary sectors outperformed, benefiting from lower oil prices and reduced geopolitical uncertainty. 

International Business Machines (IBM) was the Dow’s biggest loser, falling 4.76% to 249.87, extending its decline after recent weakness. Johnson & Johnson dropped 2.28% to 228.85, while JPMorgan Chase fell 2.17% to 326.23, and Chevron declined 2.12% to 173.81 amid sliding energy prices. Salesforce.com also featured among the losers, dropping 2.07% to 151.81. 

SpaceX Stock Slides 8% for Second Consecutive Loss as Post-IPO Volatility Persists 

SpaceX (SPCX) shares continued their descent on Thursday, falling approximately 8% to 185.00, marking the second consecutive session of losses after the stock’s record-breaking IPO debut. The stock had surged more than 60% in its first three days of trading, reaching an intraday high above $225 on Tuesday before retreating. 

The space exploration and satellite communications company, headquartered in Hawthorne, California, had leapfrogged Amazon in market capitalisation on Tuesday to rank among the world’s most valuable companies. Despite Thursday’s decline, SpaceX remains well above its $135 IPO price, with the post-IPO pullback representing a correction from what analysts described as “Tesla-like volatility” driven by the company’s unusually small public float of 4.2% and high retail allocation of approximately 30%. 

Analysts warned that SpaceX shares could remain highly volatile, with a small public float and strong retail participation potentially driving swings of 20% to 30%. The stock may see renewed demand if index providers add it to their products as early as Monday, prompting passive funds to buy shares. Despite Thursday’s decline, the stock still trades about 30% above its IPO price. 

Accenture Shares Plunge 18% to 127.88 on Mixed Results, Cybersecurity Acquisitions 

Accenture plc (ACN) tumbled 18.03% to 127.88, extending its year-to-date losses to over 50%, after reporting fiscal third-quarter earnings that beat estimates but revenue that missed Wall Street forecasts. The consulting and professional services firm reported earnings of $3.80 per diluted share, a 9% year-over-year increase and above consensus expectations. However, revenue of $18.7 billion fell short of analyst projections. 

The Dublin-based company narrowed its full-year revenue growth forecast to between 3% and 4%, down from the prior quarter’s range of 3% to 5%. Accenture also announced it had agreed to take a majority stake in Dragos and acquire runZero and NetRise outright to expand its cybersecurity offerings. CEO Julie Sweet said the acquisitions would create “a new platform-led growth opportunity” and expand the company’s addressable market. 

Kroger Shares Sink 8.39% as CEO Warns Costs Outpacing Sales, SNAP Benefits Pressure 

Kroger Company (KR) fell 8.39% to 56.63 after the supermarket chain reported same-store sales growth that underwhelmed expectations and warned that operating costs were growing faster than revenue. The Cincinnati-based retailer reported same-store sales excluding fuel of 1% for the quarter, down from 3.2% in the same period last year. 

Kroger reported earnings of $1.46 per share on revenue of $46.1 billion, both in line with Wall Street estimates. However, gross margin contracted to 22.7% from 23% a year earlier, weighed down by higher transportation costs, egg deflation, and increased promotional discounts. 

New CEO Greg Foran said rising operating costs outpaced sales growth, calling the trend unsustainable. He noted that high fuel prices and lower SNAP benefits are pressuring consumers. E-commerce remained a bright spot, with online sales rising nearly 20% and turning profitable. 

U.S. Gas Prices Fall Below $4 Nationwide for First Time Since March as Oil Tumbles 

The national average price for regular gasoline fell to $3.999 a gallon on Thursday, dropping below $4 for the first time since 30 March, according to AAA. The decline marks a fourth straight weekly drop, with prices down 13 cents over the past week.  

Lower crude oil prices, supported by easing tensions in the Middle East and the reopening of the Strait of Hormuz, have helped bring down fuel costs. Twenty-eight states now average below $4 a gallon, while 22 remain above that level. In May, all 50 states had average gasoline prices above $4 per gallon. 

Federal Reserve’s Hawkish Signals Drive Dollar Higher, Two-Year Yield at 4.16% 

The U.S. dollar index climbed 0.8% to 100.80 on Thursday, extending gains after Federal Reserve Chair Kevin Warsh underscored the central bank’s commitment to price stability. The two-year Treasury yield eased to 4.16% from 4.20%, while the 10-year yield slipped to 4.46% after briefly touching 4.5% on Wednesday. Warsh signalled a hawkish stance, stressing the Fed’s determination to achieve its 2% inflation target. Nine of 18 policymakers expect a rate hike in 2026, leading markets to price in a roughly 50% chance of a 25-basis-point increase in September. 

Jobless Claims Cool to 226,000, Philadelphia Fed Manufacturing Index Beats Estimates 

The U.S. Labor Department reported 226,000 initial jobless claims for the week ended 13 June, down 4,000 from the previous week’s revised total of 230,000 and close to expectations of 225,000, signalling continued labour market resilience. Continuing claims rose to 1.81 million from 1.786 million, while the four-week average increased to 223,250. Meanwhile, the Philadelphia Fed manufacturing index climbed to 10.3 in June from -0.4 in May, beating forecasts and pointing to a rebound in regional factory activity despite persistent inflation and the Federal Reserve’s hawkish stance. 

Markets Closed Friday for Juneteenth as Summer Trading Holiday Calendar Begins 

U.S. stock and bond markets will remain closed on Friday, 19 June, for Juneteenth. The next market holiday is Independence Day, with bond markets closing early at 2:00 p.m. ET on 2 July and both stock and bond markets closed on 3 July.  

Thursday’s session also featured a record $8.3 trillion options expiry, which, along with adjusted expiration schedules due to the holiday, helped push Nasdaq trading volume to 17.43 billion shares, nearly double its average. 

The Nasdaq Composite climbed 1.91% to 26,517.93, led by a semiconductor rebound as the Philadelphia Semiconductor Index gained 6.42%. Intel surged 10.6%, helped by reports of an Apple partnership and easing U.S.-Iran tensions that lowered oil prices. Hawkish Federal Reserve signals lifted Treasury yields and the dollar, while U.S. gas prices dipped below $4. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/