Technology shares powered Wall Street sharply higher on June 18, with the Nasdaq surging nearly 2% as semiconductor stocks rallied and easing geopolitical tensions helped calm inflation concerns.
According to Reuters, the Nasdaq Composite jumped 496.28 points, or 1.91%, to 26,517.93, while the S&P 500 climbed 80.48 points, or 1.08%, to 7,500.58. The Dow Jones Industrial Average added 72.15 points, or 0.14%, to close at 51,564.70.
Chipmakers led the market advance, with the Philadelphia Semiconductor Index soaring 6.4%. Intel surged 10.6% to a record high after US President Donald Trump said Apple had agreed to work with the company to design and manufacture chips in the US, boosting optimism around domestic semiconductor production.
Investor sentiment was also lifted after the US and Iran signed an interim agreement extending their ceasefire by another 60 days, reducing concerns over disruptions to global energy supplies. Oil prices fell to their lowest level since early March, easing fears that higher energy costs could reignite inflation pressures.
The prospect of lower fuel costs sparked gains in travel-related stocks, helping consumer discretionary shares rise 1.8%. Technology stocks led all sectors with a 2.7% gain, while the Dow Jones Transportation Average advanced 0.5% as airline and cruise operators benefited from the decline in oil prices.
Despite the rally, investors remained cautious on the outlook for monetary policy after Federal Reserve (Fed) Chair Kevin Warsh reiterated the central bank’s focus on combating inflation. Traders continue to price in the possibility of additional interest-rate hikes later this year, with markets assigning roughly a 50% probability of a 25-basis-point increase in September.
Small-cap stocks also joined the advance, with the Russell 2000 climbing 2% to a record closing high. Fresh labour market data showing a decline in weekly jobless claims underscored the resilience of the US economy and provided further support for equities.
Not all sectors participated in the rally. The S&P 500 software and services index fell 0.7%, pressured by an 18% plunge in Accenture after the consulting giant lowered the upper end of its annual revenue forecast. Other IT services firms, including Cognizant, Gartner and IBM, also moved lower.
Among individual stocks, Kroger dropped 8.4% after reporting weaker-than-expected first-quarter earnings and maintaining its full-year guidance. SpaceX fell 3.6%, extending losses for a second consecutive session after a strong post-listing rally following its market debut last week.
Trading volumes were significantly elevated as investors navigated “triple witching”, the quarterly expiry of stock options, index options and futures contracts, a phenomenon that often amplifies market activity and volatility.
For the holiday-shortened week ahead of June 19’s Juneteenth market closure, the Nasdaq led the major indexes with a gain of 2.43%, while the S&P 500 advanced 0.93% and the Dow rose 0.71%.
The strong finish suggests investors remain willing to buy into growth and technology stocks when inflation concerns ease, even as expectations for tighter Fed policy continue to loom over the market.
