On June 18, the Dow Jones Industrial Average rose 0.14% to close at 51,564.70. The S&P 500 index increased by 1.08% to finish at 7,500.58, while the tech-heavy Nasdaq composite jumped 1.90% to end at 26,517.93.
The market reacted positively to easing tensions in the Middle East. Hopes for the normalization of shipping through the Strait of Hormuz following a temporary agreement between the U.S. and Iran led to a drop in international oil prices, raising expectations that inflationary pressures could ease. Although the Federal Reserve indicated the possibility of rate hikes later this year while keeping rates steady the previous day, the optimism surrounding oil price stability helped mitigate some of those concerns.
Semiconductor stocks led the rally, with the Philadelphia Semiconductor Index soaring over 6%. Intel shares surged more than 10% on news of a collaboration with Apple for semiconductor design and production in the U.S. Apple also saw gains.
In contrast, some software stocks struggled. Accenture faced a sharp decline amid concerns over its earnings, highlighting a divergence within the tech sector.
Economic indicators did not significantly heighten fears of a slowdown. Weekly jobless claims remained low, suggesting a relatively robust labor market. However, the simultaneous resilience of employment and prices raised concerns that the Fed's tightening measures could persist longer than anticipated.
Small-cap stocks also performed well, with the Russell 2000 index climbing over 2%, indicating a broad-based buying trend across risk assets beyond just large tech companies.
The market closed ahead of the 'Juneteenth' holiday on June 19. This week, the New York Stock Exchange experienced volatility amid conflicting signals from the Fed's hawkish stance and easing tensions in the Middle East, but the U.S.-Iran agreement and strength in semiconductor stocks ultimately drove the late-session rally.
* This article has been translated by AI.
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