New York, June 20, 2026, 13:03 (EDT)
- S&P 500 rose 0.93% this holiday week. Nasdaq jumped 2.43%. Dow up 0.71%. NYSE was closed Friday for Juneteenth.
- Semiconductor stocks rebounded Thursday. Intel rose 10.6% after President Donald Trump said Apple is teaming up with Intel for U.S. chip design and manufacturing.
- Micron’s earnings, the PCE inflation print, and final Q1 GDP all land this week, after the Fed left rates steady at 3.50%-3.75%.
U.S. stocks ended the short week higher. Chip names bounced on AI strength, wiping out losses after midweek Fed jitters hit the market on talk of more rate hikes.
Volatility is up in the market. Investors keep buying growth linked to artificial intelligence, with semiconductors in focus, while the Fed holds firm on rates and inflation worries. The central bank left the federal funds rate unchanged at 3.50% to 3.75%, sticking with the current overnight rate across the economy. Fed officials said inflation remains a problem, citing energy costs.
U.S. stocks closed up in a holiday-shortened week, with markets shut Friday for Juneteenth. The Dow finished 72.15 points higher, or 0.14%, at 51,564.70. The S&P 500 rose 80.48 points, or 1.08%, to 7,500.58. The Nasdaq ended up 496.28 points, rising 1.91% to 26,517.93. Tech jumped 2.7%. The Russell 2000 set another record high.
Not everything moved higher. Intel jumped after Apple’s chip news, while Nvidia added 3% and Micron gained 8.7%. Chips are still leading the market action. Cyclicals and defensives fell behind.
Micron will report earnings Wednesday, June 24. Shares of the chipmaker have surged 298% this year, Reuters reported, as investors watch if demand from data centers and AI spending remains strong enough to top forecasts. “There’s still a lot of juice” in the AI revenue-surprise story, said Andy Pratt, director of investment strategy at Burney Company. Steve Kolano, CIO at Integrated Partners, called the action a “classic positive feedback loop.” Reuters
Fed kept its stance cautious. Traders looked at Chair Kevin Warsh’s less strict messaging and weighed the odds for more rate hikes this year. Eric Johnston, chief equity and macro strategist at Cantor, said markets now give the Fed “more credibility around inflation.” A basis point equals one-hundredth of a percent. More expected hikes could pressure high-valuation growth stocks. Reuters
Indexes moved up but weakness showed in some names. Accenture dropped 18% after trimming the upper end of its yearly revenue view. Kroger fell 8.4% as quarterly earnings missed estimates. Companies coming up short took hits, even with indexes higher.
Oil prices moved lower after the U.S. and Iran reached a deal aimed at reopening the Strait of Hormuz, which handles a big chunk of world oil trade. Adam Turnquist at LPL Financial said “uncertainty remains elevated” as worries linger about more flare-ups, shipping issues, and where Iran’s nuclear ambitions will go next. AP News
Plenty of risks remain. A hot PCE inflation read, a weak Micron forecast, or more tension in the Gulf all threaten to snap this rally. The S&P 500 trades close to its highs, but the gains hang on AI chip stocks. One slip there and the broader market could feel it.
Markets head into a busy holiday week as the Bureau of Economic Analysis releases May personal income, outlays and the PCE price index Thursday, along with the third estimate for first-quarter GDP. PCE is what the Fed watches for inflation. GDP on the same day. The market’s bet—earnings support AI stocks, inflation keeps the Fed on hold.
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