US Stock Market Today: Wall Street Climbs as Lower Oil Prices and Intel Gains Offset Hawkish Fed Signals

US stocks moved higher on Thursday as falling oil prices and gains in semiconductor companies helped markets recover from the previous session’s Federal Reserve-led sell-off. Investors assessed a new US-Iran agreement while weighing the possibility of an interest rate increase later in 2026.

The S&P 500 gained about 1%, while the NASDAQ Composite climbed roughly 1.3%. The Dow Jones Industrial Average added more than 250 points. Earlier market data showed the three US stock indexes advancing as much as 0.7% to 0.9%.

Oil Prices Slide After US-Iran Interim Agreement

Oil prices fell after the United States and Iran signed an interim agreement aimed at extending the ceasefire in the Middle East. The arrangement gives both sides another 60 days to negotiate a final settlement. Tankers have also resumed movement through the Strait of Hormuz.

US West Texas Intermediate crude dropped about 3% to nearly $74 per barrel. Brent crude traded around $77, moving closer to its prewar level of about $72.50. Lower energy prices also pushed the average US gasoline price below $4 per gallon.

The decline eased some concerns about energy-driven inflation. Still, traders remained cautious about how long the agreement would hold and whether both governments could reach a lasting deal.

A market strategist said the agreement “seems to be usurping” the negative reaction to the Federal Reserve. The comment showed that traders were placing more weight on lower oil prices, although the final outcome of the negotiations remained uncertain.

Intel Leads Broad Rally Across Semiconductor Stocks

Intel shares jumped between 7% and 10% after President Donald Trump said Apple would work with the chipmaker on designing and producing semiconductors in the United States. The announcement raised expectations that Intel could secure more work from major technology companies.

Other chip stocks also advanced. NVIDIA stock gained more than 1%, while Micron Technology and Marvell Technology rose over 5%. The Philadelphia Semiconductor Index climbed about 4.6% and reached a record, while a major semiconductor exchange-traded fund added more than 5%.

Gene Munster described the Apple agreement as an “endorsement” that could place Intel back among leading technology companies. Nevertheless, the partnership’s financial terms, production schedule and expected chip volumes were not disclosed.

Technology stocks supported the wider market, with the S&P 500 technology sector rising around 1.6%. Industrials also gained as eight of the index’s 11 main sectors moved higher.

Investors Assess Fed’s Hawkish Rate Forecast

Stocks fell sharply on Wednesday after the Federal Reserve kept interest rates unchanged but released projections showing that nine of 18 officials expected rates to rise in 2026. The forecast increased concerns that policymakers could tighten monetary policy to control inflation.

New Chair Kevin Warsh did not submit an individual rate estimate. During his press conference, he repeatedly referred to the need for price stability. Traders viewed the language as hawkish, although officials appeared divided over the next policy step.

One strategist said the Fed had ‘spoiled the mood’ with its updated projections. He also noted that only about half of policymakers supported higher rates, raising doubts about whether the central bank had enough agreement to deliver an increase.

Market pricing showed the chance of a September rate increase rising sharply after the meeting. Estimates varied between 50% and 64%, compared with approximately 27% to 29% before the announcement.

Accenture and Kroger Fall as Jobless Claims Decline

Not every major stock joined Thursday’s recovery. Accenture dropped almost 16% after cutting the upper end of its annual revenue forecast. Cognizant and IBM also declined, while Kroger fell more than 6% after reporting weaker-than-expected quarterly profit.

Meanwhile, weekly jobless claims declined as layoffs stayed low. The data pointed to a stable labor market, although that strength could give the Federal Reserve more room to keep borrowing costs elevated.

Jefferies Financial Group also faced a brokerage downgrade after gaining 51% in the current quarter. The analyst raised the price target but said much of the positive outlook appeared reflected in the share price.

Trading activity could remain volatile due to the quarterly expiry of stock and index derivatives. Moreover, US markets will close on Friday for the Juneteenth holiday.

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