HomeMarketsDow closes higher as chip rally eases Fed rate concerns

Dow closes higher as chip rally eases Fed rate concerns

Posted: 18 June 2026, 20:32 CET 2 min read

The Dow rose 72.15 points to 51,564.70 as semiconductor stocks led a rebound and helped ease concerns about Federal Reserve interest-rate increases.

The Dow Jones Industrial Average gained 72.15 points to close at 51,564.70 on Thursday as a surge in semiconductor stocks helped lift market sentiment. The S&P 500 rose 1.08% to 7,500.58 and the Nasdaq Composite climbed 1.91% to 26,517.93.

Chipmakers led the advance after President Trump announced that Apple had agreed to work with Intel on designing and manufacturing chips in the United States. Intel jumped 10.6%, Micron Technology gained about 9%, Nvidia added nearly 3% and the iShares Semiconductor ETF rose more than 6%. The Philadelphia Semiconductor Index outperformed the broader market.

The rally followed a sharp selloff the previous session after the Federal Reserve’s first policy meeting under Chair Kevin Warsh. The Fed’s updated dot plot showed nine of 18 policymakers expect interest rates to rise in 2026. Warsh abstained from submitting an interest-rate projection and emphasized the importance of achieving price stability.

Markets still priced in a chance of further tightening. CME Group’s FedWatch tool put the probability of a 25-basis-point increase by September at about 50% and assigned roughly a 20% chance to a 50-basis-point move.

Oil prices eased after the United States and Iran signed an interim agreement that extended an April ceasefire by 60 days to allow more time for negotiations. Shipping through the Strait of Hormuz began to resume, reducing disruptions to oil, natural gas and fertilizer transport, and pushing oil to its lowest levels since early March. President Trump warned that military action could resume if Iran did not comply with the pact.

Economic data supported the session as weekly jobless claims declined, indicating layoffs remained subdued. Among individual stock movers, Accenture fell after trimming the upper end of its annual revenue forecast, pulling peers including Cognizant Technology Solutions, Gartner and IBM lower. Kroger slipped after reporting weaker-than-expected first-quarter profit while keeping its full-year outlook. Shares of SpaceX eased for a second session after a strong post-IPO rally.

Thursday was a triple witching day, the quarterly expiration of stock options, index options and futures contracts, an event that can increase trading volumes and volatility.