Nasdaq Leads Market Rally as Semiconductor Stocks Surge

Wall Street finished the session strong, with the Nasdaq Composite climbing 1.91% to 26,517.93 and the S&P 500 rising 1.08% to 7,500.58. Intel shares led the tech sector, surging 10.6% following President Donald Trump’s confirmation that the company would collaborate with Apple on U.S.-based chip production. The Dow Jones Industrial Average added 0.14%, closing at 51,564.70.

Oil markets fluctuated as an interim U.S.-Iran agreement allowed tankers to move through the Strait of Hormuz. Brent crude futures settled at $79.85 after hitting an intraday low of $76.54, while U.S. West Texas Intermediate dipped to $76.60. Market sentiment remains cautious regarding the deal's longevity, particularly after Vice President JD Vance warned Israel against further strikes on Hezbollah in Lebanon.

The U.S. dollar index reached a one-year high of 100.80, bolstered by a hawkish policy shift from the Federal Reserve. With Kevin Warsh leading a new policy review, futures markets now price in a 68% probability of a rate hike by September. This strength pressured the Japanese yen, which weakened to 161.45 per dollar, nearing its lowest levels since 1986. Meanwhile, U.S. Treasury yields retreated slightly, with the two-year note falling to 4.153% as investors recalibrated their interest rate expectations ahead of the Juneteenth holiday.