Dow Ends Up as Chips Gain, Lower Oil Prices Offset Fed Jitters

18 June 2026

New York, June 18, 2026, 16:01 (EDT)

Dow Jones Industrial Average closed at 51,623.81, up 131.26 points, or 0.25%. The index recovered some ground after Wednesday’s Fed-related drop.
The S&P 500 climbed 0.95% and the Nasdaq Composite added 1.61%. Growth stocks stayed out front as the Dow lagged behind.
Oil prices slipped, chip stocks climbed, and investors questioned the Fed’s path, with these themes steering trade ahead of the U.S. market’s Juneteenth close Friday.

Dow ends up on Thursday, bouncing after Wednesday’s selloff. Chip stocks rallied. Lower oil prices also supported gains.

The calendar played a role. This was the final full session for U.S. cash equities ahead of Friday’s Juneteenth holiday, so traders were left to manage quick swings in energy prices, fresh demand for tech, and a Fed reminder that inflation isn’t done. The NYSE marks Juneteenth National Independence Day as a market holiday on Friday, June 19 in 2026.

The Dow slipped behind the S&P 500 and Nasdaq, as gains focused on technology and chip stocks, not the big-ticket industrial and financial names that count most in the price-weighted Dow. In a price-weighted index like the Dow, higher-priced stocks drive more of the move than lower-priced ones. S&P Dow Jones Indices calls the Dow a price-weighted gauge of 30 U.S. blue-chip firms.

Semiconductor stocks led gains. The Philadelphia semiconductor index jumped and outperformed the broader market, Reuters said. Intel shares hit a record after President Donald Trump said Apple agreed to work with Intel on chip design and manufacturing in the US. “Continued excitement around the semiconductor sector” was a key driver, said Eric Johnston, chief equity and macro strategist at Cantor in New York. Reuters

Oil helped stocks again. Reuters said U.S. and Iranian officials signed an interim deal that extends a ceasefire and allows all ships to pass through the Strait of Hormuz. Crude fell, taking some pressure off inflation worries. Brian Jacobsen, chief economist at Annex Wealth Management, called the rally “more a bounce than a change in direction.” Relief was clear, but policy risk stayed in play. Reuters

Fed stays put. The central bank on Wednesday left its main short-term policy rate in the 3.50%-3.75% range and said inflation is still above its 2% target. Thursday’s move higher looked less like a signal and more like traders checking if lower oil prices weaken the argument for another rate hike.

Labor market numbers didn’t stop the rally. Weekly initial jobless claims dropped by 4,000 to 226,000 for the week ended June 13, Reuters said. Economists said the data still points to a steady labor market. “We do not expect claims to trend consistently higher from here,” said Nancy Vanden Houten, lead U.S. economist at Oxford Economics. John Ryding of Brean Capital saw “some potential slowing” in June hiring. Reuters

Accenture dropped over 18% after the company trimmed the top of its yearly revenue outlook, sending Cognizant, Gartner, and IBM down, too. Kroger slipped after missing on quarterly profit forecasts. SpaceX lost ground for a second day following its recent debut.

Dow managed a slim move higher. Buyers stepped in, but most of the fresh money went into Nasdaq instead of the bigger cyclical names. In short, cheaper oil gave the market some breathing room but left Fed uncertainty in place.

Thursday carries risk if both supports drop. If the U.S.-Iran deal cracks and oil climbs, inflation could bounce back fast and traders might lean back toward more rate hikes. Reuters pointed to Thursday’s “triple witching” as well, with quarterly expiries for stock options, index options, and futures. That can spike trading and sometimes drive bigger late moves. Reuters

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Jerzy Lewandowski is a senior markets editor at TS2.tech. His coverage ranges from stocks and semiconductors to AI and the broader global markets. He studied economics at the University of Warsaw and worked in investment analysis before becoming a financial journalist. Follow Jerzy Lewandowski on Google News.

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