US Markets Weekly Wrap: Nasdaq Gains 1.91%, S&P 500 Gains 1.08% and Dow Hits Record 51,564 on Intel ‘s10.6% Rally
Authored By HDFC SKY | Last Modified: Jun 21, 2026 12:35 PM IST
Mumbai, June 21: US markets exhibited volatile but positive performance during the shortened trading week, with the Nasdaq Composit outperforming all other indices. The tech-driven index recorded an impressive rise of 1.91% to close at 26,517.93, while the S&P 500 rose by 1.08% to close at 7,500.58 and the Dow Jones Industrial Average advanced 0.7% to 51,564.70
Markets remained closed on Friday, June 19, in observance of the Juneteenth celebration, as the week’s gains were sealed amid a rebound session on Thursday, fuelled by the US-Iran peace deal and the historic rise in semiconductor stocks.
Nasdaq Gains 0.31% on Monday as SpaceX Makes Historic $75 Billion Debut
The trading week started on a strong note for the Nasdaq index, with two catalysts pushing investor confidence. President Trump announced that a peace deal between the US and Iran had been reached, and meanwhile, SpaceX made its debut on the Nasdaq index after a record $75 billion initial public offering.
The Nasdaq Composite advanced 0.31% to 25,888.84, whereas the Dow Jones Industrial Average climbed 0.70% or 353.51 points, to reach 51,202.26, while the S&P 500 increased by 0.5% to 7,431.46.
Out of the eleven sectors within the S&P 500, ten closed on the positive side, with materials leading the way, having risen by 1.8%, followed by financials, up 1.4%, and utilities up 1.1%. Healthcare was the only laggard, falling 0.2%. The CBOE Volatility Index closed 9.1% lower at 17.68, indicating easing investor anxiety.
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SpaceX, trading under the ticker as SPCX, emerged as the undisputed star of the session on the Nasdaq on Monday. The firm, which generated $75 billion through selling about 555.6 million shares at a price of $135 per share, traded at $150, an 11% premium. The stock gained 9.2% on Monday to close at $176, marking a total increase of 46% from the IPO price.
The IPO valuation of SpaceX was at around $1.77 trillion, making it the sixth-largest US-listed company by market capitalisation. It surpassed Saudi Aramco’s IPO which was valued at $29.4 billion in 2019, making this the largest ever public listing in history. Investor demand was strong, with orders reportedly reaching up to four times that of the available shares.
The debut reportedly saw Elon Musk’s net worth surpass the $1.2 trillion mark, making him the first trillionaire on paper. The Nasdaq 100 Index was up by 3.06% on Monday, while strength prevailed in the technology and semiconductor stocks.
Dow Hits Record High Above 52,000 on Tuesday as Nasdaq Surges 3.1%
Tuesday, 16 June, saw the Dow Jones Industrial Average hit record highs above 52,000 for the first time, climbing 0.9% or 468.77 points to 51,671.03. The S&P 500 surged 1.7% to 7,554.29, while the Nasdaq Composite rallied 3.1% or 795.10 points to 26,683.94.
Seven of eleven S&P 500 sectors ended in positive territory, with information technology leading at 3.4%, followed by communication services at 2.4% and consumer discretionary at 1.9%. Energy was the worst performer, declining 3.6% as crude oil prices continued to tumble following the US-Iran peace deal.
A notable theme emerged as investors rotated out of technology stocks and into industrial, transportation, and financial sectors. Cooling oil prices favoured cyclical sectors over tech, with AI infrastructure player CoreWeave jumping almost 10% on bullish analyst sentiment.
However, many popular technology and semiconductor stocks – including Nvidia, Broadcom, Micron, and AMD – fell due to profit-taking. The S&P 500 recorded 41 new 52-week highs against 3 new lows, while the Nasdaq recorded 202 new highs and 89 new lows. Boeing was the top Dow performer, rising 4.5%, while Goldman Sachs gained 2.6% to lead the Dow on Monday.
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Western Digital surged 16.10% to lead S&P 500 gainers on Tuesday, while Fox Corp. plunged over 16% after agreeing to acquire Roku in an approximately $22 billion deal, weighing on the communication services sector. The Philadelphia Semiconductor Index gained 4.8% on Monday and continued its upward trajectory.
Nasdaq Falls 1.34% on Wednesday as Hawkish Fed Shocks All Three Indices.
The most significant event of the week unfolded on Wednesday, 17 June, when the Federal Reserve held its first policy meeting under new Chair Kevin Warsh. The Federal Open Market Committee voted unanimously to keep the federal funds rate steady at a target range of 3.50% to 3.75% – the third consecutive hold.
However, the accompanying Summary of Economic Projections delivered a hawkish surprise that rattled markets. The dot plot revealed that 9 of 18 policymakers expect at least one rate hike in 2026, with 3 members projecting one 25-basis-point hike and 6 projecting 50 basis points of hikes. The 2027 inflation forecast was raised to 2.7%. Notably, Chair Warsh refrained from offering his own personal projections for interest rates, leaving one dot missing from the chart.
The market reaction was swift and severe across all three indices. The Nasdaq Composite declined 1.34% or 354.69 points to 26,021.66. The Dow Jones Industrial Average, which had been up as much as 280 points in early trading, ended down 507 points or 0.98% at 51,492.55.
The S&P 500 fell 1.21% to 7,420.10. All sectors declined, with communication services dropping 2.91% and consumer cyclicals falling 2.34%. Megacap technology stocks were hit hard: Salesforce fell 4.12%, Microsoft declined 3.80%, and Amazon slid 3.48%. The VIX surged 1.3% to 16.41 as risk appetite diminished.
Also Read: SpaceX Races Past Amazon in Market Value as Stock Now Stands Behind Microsoft After Post-IPO Rally
The S&P 500 recorded 23 new 52-week highs and 3 new lows, while the Nasdaq recorded 78 new highs and 119 new lows. Analysts noted that higher interest rates could pressure stock markets, as consumers tend to spend less and expansion becomes harder when borrowing costs are elevated, potentially reducing appetite for riskier sectors such as technology and AI.
Nasdaq Surges 1.9% on Thursday as Intel’s 10.6% Rally and Iran Peace Deal Spark Rebound
Thursday, 18 June, witnessed a dramatic market reversal as investors returned to risk assets following the electronic signing of the US-Iran peace agreement. President Trump and Iranian President Masoud Pezeshkian signed the “Islamabad Memorandum of Understanding,” which would enter into force with immediate effect.
As a first step, Iran would instantly reopen the Strait of Hormuz, and the United States would immediately lift the naval blockade. The agreement included a commitment from both sides to negotiate a final deal within 60 days.
The Nasdaq Composite surged 1.91% or 496.28 points to 26,517.93, recovering all of Wednesday’s losses. The S&P 500 gained 1.08% or 80.48 points to 7,500.58, while the Dow Jones Industrial Average added a more modest 0.14% or 72.15 points to 51,564.70.
The Dow cooled 400 points from the day’s high to end just above the flat line, as investors concentrated their buying in technology and semiconductor stocks. The Philadelphia Semiconductor Index sharply outperformed the broader market, surging 6.4% to a record closing high.
The biggest single-stock story of Thursday was Intel, which soared 10.6% to a record intraday high. The catalyst came from President Trump’s Truth Social post stating that Apple “has agreed to work with Intel to design and build its chips in America”. Neither Apple nor Intel confirmed the arrangement or disclosed any terms.
Intel shares jumped as much as 12% to a record $135.48 in New York trading. The stock has soared more than 500% over the past year, lifting Intel’s market value past $670 billion. Trump noted that the US government had invested $8.9 billion in Intel common stock, equivalent to a 9.9% stake, and that the stake was now worth over $60 billion.
Other semiconductor stocks also rallied strongly on the Nasdaq. The Philadelphia Semiconductor Index surged nearly 6.5% to hit an all-time high. NVIDIA gained 2.24%, TSMC rose 4.9%, Broadcom advanced 4.26%, Micron Technology climbed 7.79%, AMD gained 3.58%, ASML rose 3.44%, and ARM Holdings advanced 5.17%. Airline stocks also surged, with the NYSE Arca Airline Index rising 3.8% on lower oil prices, while energy and gold stocks moved sharply lower.
Sector Performance: Semiconductors Dominate Nasdaq, Energy and Defence Lag
The semiconductor industry was the undisputed winner of the week across all three indices, benefiting from expectations of sustained AI spending and the Intel-Apple partnership announcement. On the Nasdaq, semiconductor stocks led the rally with strong gains throughout the week.
Western Digital led the charge with a 16.10% gain on Tuesday and continued strength, bringing its year-to-date gain to 362.6%. Applied Materials rose 8.5% on Wednesday, while Micron Technology advanced of its earnings announcement, supported by optimism over memory-chip demand for AI servers. Technology and consumer discretionary sectors also performed well, with cloud computing firms and online retail stocks attracting buyers on both the Nasdaq and S&P 500.
Conversely, energy stocks were the weakest performers on the S&P 500 as falling crude prices pressured earnings expectations. Schlumberger declined 4.5%, while oilfield service providers and exploration and production companies came under pressure. Defence contractors reversed earlier gains as investors unwound positions accumulated during Middle East tensions.
Lockheed Martin fell 4.0%, Northrop Grumman declined 5.2%, and L3Harris Technologies dropped 5.9%. Consulting firms Accenture and Cognizant underperformed on the S&P 500 amid concerns over corporate technology spending, falling 18.0% and 10.5%, respectively. Telecommunications also experienced profit-taking, with Charter Communications declining 4.4%.
Key Themes: AI Enthusiasm Drives Nasdaq, Fed Hawkishness and Geopolitical Relief Impact All Indices
Three dominant themes shaped the week’s market action across all three indices. First, the US-Iran peace agreement and reopening of the Strait of Hormuz triggered a collapse in crude oil prices, with Brent falling below $80 per barrel for the first time since March. This eased inflation fears and boosted investor confidence in risk assets, with analysts noting the deal could reduce inflation by 1.4 to 1.8 percentage points by the end of the year.
Second, the Federal Reserve’s hawkish signals created significant volatility, with the dot plot indicating potential rate hikes in 2026. The Dow’s dramatic reversal from a 280-point gain to a 507-point loss on Wednesday underscored the market’s sensitivity to monetary policy signals. Third, renewed enthusiasm for artificial intelligence and semiconductor stocks, particularly following the Intel-Apple partnership announcement, drove the Nasdaq’s outperformance over both the S&P 500 and Dow Jones.
The week also featured a major derivatives expiry on Thursday, known as “triple witching,” with the simultaneous expiration of stock options, index options, and stock index futures generating elevated trading volumes and intraday volatility across all three indices.
Wells Fargo raised its S&P 500 earnings per share forecast to $340 from $315, providing additional support to the benchmark index. The positive sentiment was further bolstered by better-than-expected consumer sentiment data, with the University of Michigan’s consumer sentiment index for June revised UP to 48.9 from 44.8.
Weekly Performance Summary Across All Three Indices
The Nasdaq Composite was the clear winner of the week, gaining 2.4% to close at 26,517.93. The index recovered sharply after Wednesday’s decline, with the Thursday rally erasing all mid-week losses.
The S&P 500 advanced 0.9% to 7,500.58, supported by strength in technology and consumer discretionary sectors, though energy and defence stocks weighed on performance. The Dow Jones Industrial Average gained 0.7% to 51,564.70, hitting record highs above 52,000 on Monday and Tuesday before paring gains following the Fed meeting.
The Dow’s modest weekly gain reflected weakness in industrial and defence stocks, which offset strength in financials and consumer cyclicals.
The week’s market action underscored the powerful interplay between geopolitical developments, monetary policy expectations, and sector-specific catalysts. The Nasdaq’s outperformance reflected sustained enthusiasm for AI and semiconductor stocks. The resolution of the US-Iran conflict and decline in oil prices provided a tailwind for equities. Market participants should monitor Fed communications, Middle East diplomatic progress, and semiconductor developments for further directional cues.
Source
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spglobal.com/spdji/en/indices/equity/sp-500/
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https://www.dowjones.com/
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