NEW YORK, June 19, 2026, 09:57 EDT
- Nasdaq jumped 1.9% Thursday, leading gains as chip stocks moved up and Wall Street finished higher. Investors welcomed signs of an interim U.S.-Iran deal.
- Markets closed for Juneteenth on Friday, making Thursday’s close the last U.S. cash-market action of the week after the Fed-driven selloff.
- Rally loses momentum as U.S.-Iran talks stalled Friday, keeping oil flat and rate hike risk still hanging over markets.
Stocks in the U.S. ended the holiday-shortened week higher Thursday. An interim U.S.-Iran deal eased some concerns over inflation, and semiconductors rallied. That helped offset renewed worries the Fed could hike rates this year. The Nasdaq Composite added 496.28 points, or 1.91%, to close at 26,517.93. The S&P 500 finished up 80.48 points, or 1.08%, at 7,500.58.
The Dow Jones Industrial Average ended up 72.15 points, or 0.14%, at 51,564.70. Over the week, the S&P 500 climbed 0.93%, the Nasdaq was up 2.43% and the Dow gained 0.71%. U.S. stock and bond markets were shut Friday for Juneteenth.
Stocks bounced back after dropping on Wednesday, when Fed Chair Kevin Warsh reinforced the central bank’s focus on fighting inflation. Investors shifted bets toward more rate hikes. Higher rates push up borrowing costs and can put pressure on stocks, since they reduce the current value of future earnings.
“Markets got spooked by Warsh yesterday essentially promising to contain inflation,” Tony Welch, chief investment officer at SignatureFD, told Reuters. But Welch also said easing oil prices, earnings and economic data were still backing markets. Cantor strategist Eric Johnston said investors saw the Fed as having more credibility on inflation. Reuters
Semiconductors led the market higher. The Philadelphia Semiconductor Index rose 6.4%. Intel shares spiked 10.6% to an all-time high after President Donald Trump said Apple will partner with Intel on chip design and production in the US. According to Investopedia, Micron and Marvell shares also climbed, up 9% and 8%.
Oil drove the wider market move. Crude prices fell early Thursday, after the U.S. and Iran signed an interim deal that extends the April ceasefire by 60 days. The first ships have started passing through the Strait of Hormuz, the crucial channel for oil, gas, fertilizer and other goods.
Brent crude managed to close up 30 cents at $79.85 a barrel, but earlier dropped as low as $76.54. U.S. West Texas Intermediate crude settled at $76.60. The dollar index hit 100.80, a peak not seen since May 2025, with the Fed’s hawkish stance boosting bets on higher U.S. rates.
Tech stocks did most of the work Thursday, with small caps also gaining and travel names moving up as lower fuel costs looked likely. But the market was far from a broad rally—just five of the 11 major S&P 500 sectors finished the day higher. Thursday’s close showed more of a move on tail risks than a full risk-on session.
Accenture dropped 18% after it cut the top end of its full-year revenue outlook, which hit software and services stocks. Kroger slipped 8.4% with quarterly profit missing forecasts. SpaceX fell 3.6%, its second loss in a row following a strong run after its IPO.
Investors ramped up bets on risk this week, pouring $38.37 billion into U.S. equity funds in the week to June 17, according to LSEG Lipper data. That’s the biggest inflow since November 2024. Tech sector funds brought in a record $21.46 billion as well.
Stocks are climbing, but the rally stands on two shaky legs: a ceasefire not yet locked in, and a Fed that could still hike. Switzerland said the U.S. scrapped planned talks with Iranian officials for Friday, as oil markets priced in less hope for a real truce. Brent is heading for a weekly drop of over 8%. The move showed how quickly the inflation narrative can flip.
