New York, June 18, 2026, 11:57 (EDT)
- The Dow Jones Industrial Average added 201.65 points, or 0.39%, to finish at 51,694.20. The S&P 500 and the Nasdaq posted bigger gains.
- Chip stocks bounced as Intel climbed, and cheaper oil took some pressure off inflation fears.
- Fed kept its benchmark rate unchanged at 3.50%-3.75% on Wednesday. U.S. stock markets will be shut Friday for Juneteenth.
The Dow Jones Industrial Average gained Thursday after oil prices fell and chip stocks jumped, but the blue-chip index lagged behind the S&P 500 and Nasdaq. Investors remained cautious on the Federal Reserve’s hawkish tone.
This move lands in the final full U.S. equity session before Juneteenth shuts trading Friday, with traders trying to price in sliding energy prices on a U.S.-Iran interim deal and a Fed that hasn’t ruled out higher borrowing costs. The New York Stock Exchange sets its core trading session from 9:30 a.m. to 4:00 p.m. ET, and lists Juneteenth National Independence Day as a Friday, June 19 market holiday in 2026.
The Dow added 201.65 points, or 0.39%, to finish at 51,694.20, according to LSEG data on Reuters. The S&P 500 advanced 1.01% to 7,495.09. The Nasdaq Composite jumped 1.37% to 26,378.43. Growth and tech outperformed the Dow’s more traditional stocks.
Semiconductor stocks led markets higher. Intel shares surged nearly 10% after President Donald Trump said Apple plans to partner with the chipmaker on U.S. chip design and manufacturing. Nvidia added 1.1%. Micron and Marvell Technology both jumped more than 5%. The Philadelphia SE Semiconductor index set a new record, according to Reuters.
U.S.-Iran headlines are moving the market more than worries about the Fed, according to Art Hogan, chief market strategist at B Riley Wealth. “Energy prices continue to trade lower,” Hogan said. Right now, traders see falling crude as easing some inflation concerns, but this hasn’t ended the debate over rates.
The Fed left the federal funds target range at 3.50% to 3.75% on Wednesday, holding the key overnight rate steady. The rate is a benchmark for what banks charge each other and influences other borrowing costs. The Fed said inflation is still above its 2% target, pointing to supply shocks that have lifted some prices, such as energy.
Rate risk is still in play. Traders are now putting the odds of a September rate hike at 50%, Reuters said, up from 27% the day before. The change followed new Fed Chair Kevin Warsh dropping forward guidance. “I can’t give you any forward guidance,” Warsh told markets, sending investors back to watch data and Fed comments. Reuters
Jobless claims data out Thursday showed mixed signals. Initial claims dropped by 4,000 to 226,000 for the week ended June 13, but continuing claims moved up to 1.81 million. Nancy Vanden Houten of Oxford Economics said there’s no expectation for claims to “trend consistently higher.” John Ryding at Brean Capital pointed to “some potential slowing” in June hiring. Reuters
But today’s move up is shaky. If oil comes back, the Iran deal gets shaky, or Fed officials get tougher on rates — meaning a 25 basis point hike, or 0.25 percentage point — the Dow could fall fast. Thursday also has “triple witching,” when stock options, index options, and futures all expire at once. That often boosts trading and makes swings rougher. Reuters
Dow and Nasdaq both moved higher, but traders aren’t making a big call on inflation yet. Buying seems focused on chips and lower energy, not broad relief. The Dow now faces a test: after the holiday, can industrials, banks, and other cyclical stocks stay bid as markets adjust to the Fed’s new, less predictable approach?
