Dow rises 349 points as chip stocks jump on Iran truce

U.S. stocks climbed on Thursday, led by a surge in semiconductor shares, after the United States and Iran released the text of an interim agreement that extends a ceasefire for 60 days. The Dow Jones Industrial Average gained 349 points, or 0.68%. The S&P 500 rose 1.03% and the Nasdaq Composite added 1.18%.

Traders cited the interim truce and weaker oil prices as factors supporting risk appetite. Global oil benchmarks fell to their lowest levels in more than three months after the agreement, reducing near-term energy costs. Data released Wednesday showed U.S. retail sales in May exceeded expectations, with consumers buying more automobiles and other goods despite higher gasoline prices.

The Federal Reserve left its benchmark interest rate unchanged at its first meeting under Chair Kevin Warsh. The Fed’s policy statement and projections indicated a more hawkish stance than some investors had expected: nine of 18 officials projected that rate increases could be appropriate in 2026. Warsh declined to provide his own rate forecast. Market pricing moved quickly after the meeting; the CME Group’s FedWatch tool showed about a 50% probability of a quarter-point rate hike in September, up from roughly 27% the previous day.

Semiconductor stocks outperformed the broader market. Intel advanced more than 10% after President Donald Trump announced Apple had agreed to work with the company on chip design and manufacturing in the United States. Nvidia rose about 1.2%. Micron Technology and Marvell Technology each gained more than 5%. The iShares Semiconductor ETF climbed more than 4.6%.

Outside chips, several individual stocks posted notable moves. Rumble jumped roughly 13% after rebranding as RUM Group and completing its purchase of German AI cloud provider Northern Data. Smith & Wesson shares surged more than 23% following a report of higher fourth-quarter sales. Accenture fell more than 15% after trimming the upper end of its annual revenue forecast and announcing plans to buy a majority stake in Dragos and to acquire runZero and NetRise in a combined deal valued at $4.18 billion.

Investors were also preparing for the quarterly expiration of stock options, index options and futures contracts, known as triple witching, an event that can increase trading volumes and short-term volatility. Analysts noted that leadership changes at the Fed and differing views among policymakers could affect how long the central bank keeps policy on hold and contribute to mixed market signals.

Markets have recovered much of the earlier weakness seen in June, supported by stronger economic data and a broader rally beyond large technology names. On Thursday, the combination of the interim truce, easing oil prices and the retail sales report coincided with the market’s advance, while traders continued to monitor the likely path for interest rates under Chair Warsh.