U.S. stocks rebounded Thursday, led by a sharp rally in semiconductors, as a signed U.S.-Iran peace deal sent oil tumbling and an Intel-Apple chip manufacturing pact lit a fire under technology shares.
The rebound came one day after stocks slumped when the Federal Reserve – in Kevin Warsh‘s first meeting as chair – held its benchmark rate at 3.50%-3.75% but raised its inflation outlook and signaled a growing bias among officials toward hiking later this year.
Crude extended its slide after the U.S. and Iran signed a 14-point memorandum of understanding to extend the ceasefire and reopen the Strait of Hormuz, where three Saudi-flagged supertankers transited hours after the deal.
West Texas Intermediate crude fell 2.2% to around $75 a barrel, while Brent slipped 1.5% to roughly $78.
Oil has now dropped about 14% over five sessions to its lowest level since the conflict began, dragging the national average gasoline price below $4 a gallon for the first time since March.
Across U.S. equity markets by midday Thursday, gains were concentrated in megacap technology, with the rest of the tape mixed. The S&P 500 rose 1.2% to about 7,505, while the Dow Jones Industrial Average added 0.8% to near 51,905.
The Nasdaq 100 outperformed, climbing 1.5% to around 30,116 as chipmakers led the charge. The Russell 2000 bucked the trend, falling 0.7% to roughly 2,897 as small caps stayed pressured by the prospect of higher-for-longer interest rates.
Thursday’s Performance In Major US Indices
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,505.40 | +1.2% |
| Dow Jones | 51,904.50 | +0.8% |
| Nasdaq 100 | 30,116.00 | +1.5% |
| Russell 2000 | 2,896.97 | -0.7% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) gained 1.2%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) rose 0.8%.
- The Invesco QQQ Trust (NASDAQ:QQQ) climbed 1.5%.
- The iShares Russell 2000 ETF (NYSE:IWM) slid 0.7%.
Chipmakers Soar On Intel-Apple Deal
The Technology Select Sector SPDR Fund (NYSE:XLK) led all S&P 500 sectors with a 2.8% gain as the semiconductor complex roared back, followed by the Utilities Select Sector SPDR Fund (NYSE:XLU), up 1.8%. On the downside, the Energy Select Sector SPDR Fund (NYSE:XLE) was the clear laggard, falling 2.0% with crude, while the Health Care Select Sector SPDR Fund (NYSE:XLV) slid 1.2%.
The VanEck Semiconductor ETF (NASDAQ:SMH) surged 5.4% to pace all industries, with the iShares U.S. Home Construction ETF (BATS:ITB) up 4.1% and the U.S. Global Jets ETF (NYSE:JETS) up 2.5% as airlines welcomed cheaper fuel.
At the bottom, the energy patch was hammered: the VanEck Oil Services ETF (NYSE:OIH) tumbled 3.8%, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) fell 2.1%, and the VanEck Gold Miners ETF (NYSE:GDX) dropped 2.0% as bullion retreated.
Intel Corp. (NASDAQ:INTC) surged roughly 9.8% after President Donald Trump said on Truth Social that Apple Inc. (NASDAQ:AAPL) had agreed to work with Intel to design and build its chips in America, a pact that would extend Intel’s more than 400% run since Washington’s 2025 investment in the chipmaker.
Peers rallied in sympathy, with Advanced Micro Devices Inc. (NASDAQ:AMD) up 3.9%, Broadcom Inc. (NASDAQ:AVGO) up 3%, and Micron Technology Inc. (NASDAQ:MU) up 4.8% ahead of its results next week.
Marvell Technology Inc. (NASDAQ:MRVL) climbed 12.1% and Astera Labs Inc. (NASDAQ:ALAB) added 11.5%, both riding the AI-silicon rally. SanDisk Corp. (NASDAQ:SNDK) rose 11.0% on the strength in memory pricing.
The downside was a near-wholesale repricing of IT services. Accenture plc (NYSE:ACN) plunged 17.4% after the consulting giant cut its fiscal-year revenue-growth guidance, citing cautious enterprise spending and a slowdown in its U.S. federal business.
The read-through cratered the entire digital-consulting cohort: Cognizant Technology Solutions Corp. (NASDAQ:CTSH) fell 10.4%, Globant S.A. (NYSE:GLOB) dropped 9.9%, EPAM Systems Inc. (NYSE:EPAM) lost 9.8%, and Genpact Ltd. (NYSE:G) slid 8.7% – all on the Accenture read-across rather than company-specific news.
Thursday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| QuantumScape Corp. (NYSE:QS) | +15.0% |
| Fermi Inc. (NASDAQ:FRMI) | +14.0% |
| Marvell Technology Inc. | +12.1% |
| Astera Labs Inc. | +11.5% |
| SanDisk Corp. | +11.0% |
Thursday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| Accenture plc | -17.4% |
| Cognizant Technology Solutions Corp. | -10.4% |
| Globant S.A. | -9.9% |
| EPAM Systems Inc. | -9.8% |
| Genpact Ltd. | -8.7% |
Photo: ImageFlow / Shutterstock
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