Wall Street Recovers Supported by Chip Stock Rally
US stocks rose on Thursday (June 17), attempting to recover from selling pressure in the previous session due to hawkish signals from the Federal Reserve. The S&P 500 and Nasdaq Composite each rose 0.8%, while the Dow Jones Industrial Average gained 271 points, or 0.5%.
The semiconductor sector was the market's main support. Intel jumped 9% after President Donald Trump said the company would partner with Apple on chip design in the US. Other chip stocks also rallied, with Nvidia rising more than 1% and Micron Technology adding more than 5%.
The strengthening chip sector pushed the iShares Semiconductor ETF up more than 4%. This movement indicates that investor interest in the semiconductor theme remains strong, despite the market being previously pressured by interest rate concerns.
Wall Street briefly weakened on Wednesday after the Fed's first meeting under Chairman Kevin Warsh raised concerns about the direction of monetary policy. The latest dot plot shows that nine of 18 Fed officials expect interest rates to rise in 2026.
Warsh's refusal to submit a rate projection also adds to the uncertainty. However, he has repeatedly emphasized his commitment to price stability, leading the market to interpret the Fed's tone as remaining hawkish. The focus next turns to the direction of Treasury yields, the response of technology stocks, and US inflation data.
Source: Newsmaker.id
