Wall Street closed higher on Thursday, driven by tech and discretionary stocks. Investor sentiment improved on the last day of the holiday-shortened week as easing inflation concerns and a U.S.-Iran peace deal lifted stocks, despite expectations of further Fed tightening. All three benchmark indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1%, or 72.15 points, to close at 51,564.7. Sixteen components of the 30-stock index ended in negative territory, while 14 ended in positive.
The tech-heavy Nasdaq Composite added 496.28 points, or 1.9%, to close at 26,517.93.
The S&P 500 gained 80.48 points, or 1.1%, to close at 7,500.58. Five of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY) and the Communication Services Select Sector SPDR (XLC) advanced 2.7%, 1.8% and 1.1%, respectively, while the Energy Select Sector SPDR (XLE) declined 1.7%.
The fear gauge CBOE Volatility Index (VIX) decreased 9% to 16.78. A total of 33.6 billion shares were traded on Thursday, higher than the last 20-session average of 21.8 billion. Advancers outnumbered decliners by a 1.72-to-1 ratio on the NYSE and by a 1.77-to-1 ratio on the Nasdaq.
Semiconductor Surge Powers Wall Street Higher
U.S. equities advanced strongly on Thursday, led by a powerful rally in semiconductor stocks that reignited investor enthusiasm for the technology sector. The Philadelphia Semiconductor Index significantly outperformed the broader market, soaring 6.4% as chipmakers attracted heavy buying interest. The rally reflected growing confidence in long-term demand for advanced computing, artificial intelligence (AI) and data-center infrastructure.
A major catalyst was Intel Corporation INTC, whose shares surged 10.6% to a record high. The strong move in Intel sparked gains across the semiconductor industry, lifting peers and reinforcing optimism about earnings growth and future investment in chip technologies. Investors viewed the strength as a sign of improving momentum across the sector.
The broad-based semiconductor advance helped propel major U.S. indexes higher. The technology-heavy Nasdaq gained 1.9%, benefiting from the strong performance of chip stocks, which remain a critical component of the index. The session underscored the market’s continued reliance on semiconductor companies as key drivers of growth and investor sentiment.
Consequently, shares of Marvell Technology, Inc. MRVL and NVIDIA Corporation NVDA rose 7.3% and 3%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peace Agreement Calms Inflation Fears
Investor sentiment improved on Thursday after the United States and Iran signed a peace agreement, and the Strait of Hormuz opened up for seafaring. easing concerns that geopolitical tensions could fuel inflation through higher energy prices. The development supported market confidence and reduced near-term inflation worries. However, investors continued to expect additional Fed interest-rate hikes this year, reflecting ongoing caution about underlying price pressures and monetary policy. Per CME’s FedWatch tool, traders were currently putting 50% odds on a 25-basis-point interest rate hike in September.
Weekly Roundup
Wall Street closed a winning holiday-shortened week on Thursday, with the Nasdaq leading with a 2.43% advance. The S&P 500 and the Dow Jones also gained 0.93% and 0.71%, respectively. A strong tech rally pushed the Nasdaq ahead of other major indexes. Semiconductor shares surged on optimism surrounding AI demand. Investor sentiment also benefited from easing inflation concerns following the U.S.-Iran peace agreement. Yet, expectations for additional Fed rate hikes tempered gains, keeping broader market advances relatively modest.
Economic Data
For the week ended June 13, initial jobless claims were 226,000, a decrease of 4,000 from the previous week’s revised level. The previous week’s level was revised up by 1,000 from 229,000 to 230,000. The 4-week moving average was 223,250, an increase of 4,000 from the previous week’s revised average. The previous week’s average was revised up by 250 from 219,000 to 219,250.
Continuing claims during the week ended June 6 were 1,810,000, an increase of 24,000 from the previous week’s revised level. The previous week’s level was revised down by 9,000 from 1,795,000 to 1,786,000. The 4-week moving average was 1,788,000, an increase of 9,750 from the previous week’s revised average. The previous week’s average was revised down by 2,250 from 1,780,500 to 1,778,250.
The Philly Fed Index for June came in at 10.3. The number for May was unrevised at -0.4.
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