Closing Bell: Tech Rebound and U.S.-Iran Memorandum Offset Hawkish Fed Signals
A historic geopolitical breakthrough and a major domestic chip-manufacturing catalyst sparked a powerful broad-based recovery Thursday, allowing major U.S. stock indexes to take back much of their losses from the previous session.
Investor sentiment turned overwhelmingly positive following news that the United States and Iran have signed a memorandum of understanding at the Palace of Versailles to end hostilities and officially reopen the Strait of Hormuz to maritime shipping.
The massive Iran relief that came Thursday over a localized de-escalation effectively neutralized a wave of selling pressure over following hawkish policy signals from newly minted Federal Reserve Chair Kevin Warsh on Wednesday. While the Fed unanimously voted to pause interest rates during its June meeting, half of the FOMC members signaled at least one interest rate hike in 2026.
Technology led the advance ahead of tomorrow's Juneteenth holiday and Thursday afternoon's compressed quarterly "quadruple triple witching" options expiration.
The S&P 500 (SPX) rose 1.08% to close at 7,500.58, the Nasdaq-100 (NDX) jumped 2.48% to 30,406.19, and the Dow Jones Industrial Average ($DJI) added 0.14% to finish at 51,564.70.
Crude oil prices moved slightly lower through Thursday’s session, retreating toward pre-war thresholds to settle near $75.752 per barrel by the closing bell. The subsequent decline in energy costs weighed heavily on oil-producing legacy giants but provided a massive margin tailwind to airlines, cruise operators, and data center managers.
Three things to watch from today’s market:
- Intel Soars on Trump Social Media Post Revealing Apple Foundry Partnership: Intel Corp. (INTC) emerged as the undisputed leader of the semiconductor complex, surging over more than 10% on massive volume. The move was ignited after President Donald Trump announced that Apple Inc. (AAPL) has agreed to utilize Intel's domestic foundry services for U.S.-based chip production. The tentative strategic partnership provided an immense boost to domestic supply chain sentiment, creating a massive "halo effect" that lifted Western Digital Corp. (WDC), Marvell Technology Inc. (MRVL) — which caught an additional bump from a KeyBanc price target hike — along with other AI memory heavyweights like Micron Technology (MU) and SanDisk Corp. (SNDK).
- SpaceX Profit-Taking Cools Post-IPO: Following a historic public market launch that briefly pushed Space Exploration Technologies Corp. (SPCX) to become the fifth largest publicly traded company, the Elon Musk-led firm faced its second straight session of profit-taking. Shares slid 3.56% as institutional desks rebalanced portfolios ahead of the long holiday weekend, locking in gains from the stock's initial run as options trading began earlier this week.
- Stable Labor Conditions Take a Backseat to Yield Compression: The Labor Department reported 226,000 jobless claims for the week, edging just below the consensus forecast of 230,000. While the economic reading generated very little standalone reaction from trading desks, the broader decline in oil prices succeeded in pulling down fixed-income yields. The benchmark 10-year Treasury yield retreated to 4.45%, relieving significant pressure on high-valuation growth companies and letting the market comfortably bypass Warsh's stricter policy warnings.
Economic Events/Data: Monday, June 22nd (ET)
- 11:30 AM: 3-Month Bill Auction
- 11:30 AM: 6-Month Bill Auction
Earnings Calendar: Monday, June 22nd (ET)
Premarket
- Outdoor Holding Company (POWW)
Postmarket
- None
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