Nasdaq Surges 1.21% as Tech Stocks Rebound; Dow and S&P 500 Rise on US-Iran Peace Deal and Intel-Apple Partnership

Mumbai, June 18: The Nasdaq Composite rebounded sharply in Thursday’s trading session, climbing 315.60 points (1.21%) to 26,337.25 as investors weighed a hawkish Federal Reserve outlook against optimism generated by a historic US-Iran interim peace agreement. 

The tech-heavy index recovered from Wednesday’s sell-off, led by semiconductor stocks after President Donald Trump announced an Intel-Apple partnership. The S&P 500 advanced 67.47 points (0.91%) to 7,487.57, while the Dow Jones Industrial Average gained 192.01 points (0.37%) to 51,684.56 as Wall Street assessed geopolitical developments and Fed policy signals. 

Intel Shares Surge 7.1% After Trump Announces Apple Partnership for US Chip Manufacturing

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Intel Corporation emerged as the standout performer, with shares jumping 7.10% to $129.68 in morning trading after President Trump’s Truth Social post disclosed that Apple would collaborate with Intel to design and manufacture semiconductors in the United States. 

The announcement sparked a broader semiconductor rally, with the iShares Semiconductor ETF (SOXX) rising more than 4%. Gene Munster, managing partner at Deepwater Asset Management, said the partnership elevates Intel from the second tier to the top tier of US technology companies. 

Micron Technology advanced 6.88%, Applied Materials climbed 6.94%, and Lam Research gained 6.21%. KLA Corporation surged 7.42%, Texas Instruments rose 4.97%, QUALCOMM added 4.95%, and Marvell Technology jumped 9.72% in premarket trading before paring gains during regular trading. The rally reflected growing confidence in domestic semiconductor production and reduced dependence on overseas manufacturing. 

US-Iran Peace Deal Sends Crude Oil Prices Plunging 3.8% to Pre-War Levels 

The signing of a US-Iran interim peace memorandum at the Palace of Versailles near Paris emerged as a major catalyst for Thursday’s rebound. President Trump and his Iranian counterpart formalised the agreement, which took effect immediately and could accelerate the reopening of the Strait of Hormuz while lifting sanctions on Iranian oil. 

Energy markets reacted sharply, with West Texas Intermediate (WTI) crude falling 3.80% to $73.87 per barrel and Brent crude dropping 3.29% to $76.93 per barrel. 

The national average gasoline price slipped below $4 per gallon for the first time since April, easing inflation concerns. The International Energy Agency (IEA) projected global oil supply to increase by 8 million barrels per day by 2027 compared with demand growth of only 2 million barrels per day, pointing to a potential supply surplus. 

Federal Reserve Hawkish Signals Weigh as Nine Officials See 2026 Rate Hikes 

Despite improving sentiment, the Federal Reserve’s hawkish stance continued to shape market expectations. The first policy meeting under Chairman Kevin Warsh showed that nine of 18 Fed officials expect interest rates to rise in 2026, while six officials project two or more rate hikes. 

Markets are pricing roughly a 50% probability of a 25-basis-point increase in September, up from about 27% a day earlier. 

Warsh did not submit a rate forecast but repeatedly stressed price stability during his press conference. Policymakers now expect Personal Consumption Expenditures (PCE) inflation to reach 3.6% by year-end, up from the previous estimate of 2.7%. 

The Fed lowered its year-end GDP growth forecast to 2.2% from 2.4% projected in March and removed forward-guidance language from its policy statement, signalling a more data-dependent approach. 

Sonu Varghese, chief macro strategist at Carson Group, said the hawkish dot plot dampened sentiment, although elevated inflation made the stance understandable. He noted that only about half of officials expect rate hikes later this year. 

Nasdaq-100 Jumps 1.83% as Technology Sector Leads Broad Market Recovery 

Technology stocks led the market rebound, with the Nasdaq-100 climbing 542.45 points (1.83%) to 30,213.40. Nvidia gained 1.91% to $208.56, Apple rose 0.90% to $298.62, and Amazon added 1.02% to $239.93. 

The Technology Select Sector jumped 2.38% to 6,860.95, while Consumer Discretionary and Industrials advanced 0.90% and 0.88%, respectively. 

Energy lagged, falling 2.29% to 810.63 as oil prices retreated. Healthcare declined 0.74% to 1,738.37, while Consumer Staples slipped 0.24% to 930.04. On the Dow, 18 stocks advanced and 14 declined, while technology shares dominated gains on the Nasdaq. 

Jobless Claims Edge Higher to 226,000 as Philly Fed Manufacturing Index Surprises 

Economic data offered mixed signals on the US economy. Initial jobless claims increased by 4,000 to 226,000 for the week ended June 13, slightly above estimates of 225,000. The four-week moving average rose to 223,250 from 219,250. 

Continuing claims increased to 1.810 million in the week ended June 6 from 1.786 million previously, exceeding expectations of 1.789 million. 

Manufacturing activity in the Philadelphia region, however, beat forecasts. The Philadelphia Fed manufacturing index climbed to 10.3 in June from -0.4 in May and surpassed estimates of 9.8. The employment gauge rose to 7.9 from -2.8, while new orders, unfilled orders and shipments posted strong gains. 

IBM and Chevron Lead Decliners as Dow Faces Sectoral Divergence 

Several Dow components underperformed despite the technology rally. IBM fell 6.23% to $246.01, making it the weakest Dow stock. Merck & Co lost 2.54% to $112.51, Chevron declined 2.37% to $173.37, Boeing dropped 2.23% to $220.60, and Johnson & Johnson slipped 2.09% to $229.14. 

Accenture tumbled around 14% in premarket trading after announcing acquisitions worth approximately $4.175 billion, including runZero, Netrise and a majority stake in Dragos. 

Pfizer shed 1.5% after announcing that Chief Financial Officer Dave Denton would step down on August 15. Senior vice president of finance Cecile Guegan was named interim finance chief. 

Dollar Index Hits 100.725 on Hawkish Fed Signals as Yen Weakens to 160.89 

Currency markets reflected the Fed’s hawkish tone, with the US Dollar Index reaching 100.725, its highest level since May 19, 2025. The dollar strengthened to 160.89 against the Japanese yen, its strongest level since July 11, 2024, while the euro weakened to 1.147. 

The 10-year Treasury yield eased to 4.44%, down 1.38%, and the 30-year Treasury yield declined 0.93% to 4.88%. Gold prices slipped 0.48% to $4,239.02 per ounce as safe-haven demand weakened. 

Sector Performance Shows Technology Strength as Energy Weakens on Oil Collapse 

Technology remained the best-performing sector, rising 2.38% as semiconductor stocks rallied on the Intel-Apple partnership and optimism surrounding artificial intelligence. 

Consumer Discretionary gained 0.90%, helped by Home Depot, which climbed 3.11% to $337.60, and Caterpillar, which rose 2.36% to $978.50. 

Energy was the worst-performing sector, plunging 2.29% as oil prices returned to pre-war levels. Healthcare fell 0.74%, weighed down by Merck and Johnson & Johnson, while Consumer Staples declined 0.24%. 

Global Markets Rally as Nikkei 225 Breaks 71,000, KOSPI Hits Record High 

Positive sentiment spread to global markets. Japan’s Nikkei 225 rose 1.65% to 71,053.49, breaking above 71,000, while South Korea’s KOSPI reached a record high. 

European markets also traded higher, tracking gains in US futures. The New York Stock Exchange Composite Index added 0.20% to 23,516.99, reflecting broad-based strength across US equities. 

Looking Ahead: Markets Brace for Juneteenth Holiday and Continued Fed Policy Scrutiny 

Thursday marks the final trading session of the week for US markets, which will remain closed on Friday for the Juneteenth holiday. 

Investors will monitor developments surrounding the US-Iran agreement, including negotiations over Tehran’s nuclear programme expected during the next 60 days. The expiry of stock and index derivatives ahead of the holiday could add volatility. 

Market participants will also continue to scrutinise Federal Reserve communications for clues on the interest-rate path. The contrast between the hawkish dot plot and the disinflationary impact of lower oil prices is likely to keep markets sensitive to upcoming economic data and further comments from Chairman Warsh. 

The Nasdaq’s 1.21% advance reflects renewed risk appetite driven by easing geopolitical tensions and falling oil prices, though Federal Reserve hawkishness persists. Technology and semiconductor stocks outperformed following the Intel-Apple partnership announcement, while energy shares lagged amid crude oil’s collapse to pre-war levels. The US dollar strengthened significantly, while Treasury yields showed mixed movements across the curve.