US Stocks Recover Supported by Chip Stock Rally
US stocks rallied on Thursday (June 18th), recovering some of their earlier losses after the Federal Reserve signaled the possibility of an interest rate hike this year. The S&P 500 rose about 1.1%, the Nasdaq Composite gained 1.9%, while the Dow Jones Industrial Average added 73 points, or 0.1%.
The semiconductor sector was the market's main driver. Intel jumped 9% after President Donald Trump said the company would partner with Apple for chip design in the US. Nvidia shares rose more than 2%, Micron Technology surged more than 9%, while the iShares Semiconductor ETF gained more than 6%.
The chip stock rally suggests investors still view artificial intelligence and technology infrastructure as important catalysts. Robert Conzo of The Wealth Alliance believes that collaboration between companies on AI infrastructure could be a positive trend for various industries, with the Apple-Intel partnership being one early example.
However, the market remains overshadowed by the Fed's hawkish signals. The latest dot plot shows that nine of 18 Fed officials expect interest rates to rise in 2026. Fed Chairman Kevin Warsh also refrained from submitting a rate projection, but repeatedly reiterated his commitment to price stability.
For the stock market, this situation creates a two-way sentiment. On the one hand, expectations of higher interest rates could depress valuations, especially for growth stocks. On the other hand, the better-than-expected May jobs report, strong retail data, and the outlook for corporate profits continue to support risk appetite.
The next focus will be on the direction of Treasury yields, the response of technology stocks to Fed signals, and whether the semiconductor rally can sustain. As long as economic data remains solid, Wall Street is likely to remain selective, with the chip sector as a key support.
Source: Newsmaker.id
