Wall Street Recovers, Chip Stock Rally Lifts Nasdaq
US stocks rallied on Thursday (June 19), recovering earlier losses after the Federal Reserve signaled the possibility of an interest rate hike this year. The S&P 500 rose 1.08% to close at 7,500.58, the Nasdaq Composite gained 1.91% to 26,517.93, while the Dow Jones Industrial Average added 72.15 points, or 0.14%, to 51,564.70.
The semiconductor sector was the market's main driver. Intel surged 10.6% after President Donald Trump said the company would partner with Apple to design chips in the US. Nvidia rose about 3%, Micron Technology rallied nearly 9%, while the iShares Semiconductor ETF surged more than 6%.
The chip stock rally suggests investors continue to prioritize artificial intelligence and technology infrastructure as key market themes. Robert Conzo of The Wealth Alliance believes that increased collaboration between companies on AI infrastructure could be a cross-industry driver, with the Apple-Intel partnership being one example that could be repeated in the future.
However, the market has not completely shaken off monetary policy pressure. Wall Street weakened on Wednesday after the Fed's first meeting under Chairman Kevin Warsh raised concerns about the direction of interest rates. The dot plot showed that nine of 18 Fed officials now expect interest rates to rise in 2026.
Warsh did not provide rate projections but repeatedly reiterated his price stability target during the press conference. This tone was seen as hawkish because it indicated the Fed remained cautious about inflation risks, even though economic data still supported market sentiment.
Additional support came from a solid earnings outlook, better-than-expected May employment data, and the latest positive retail sales. This combination helped maintain risk appetite, particularly in the technology sector and AI-related growth stocks.
Despite the holiday-shortened week, major US indexes closed positive. The S&P 500 rose 0.9%, posting its 11th weekly gain in 12 weeks. The Dow advanced 0.7%, while the Nasdaq jumped 2.4%.
The market's next focus will be on the direction of Treasury yields, developments in the Fed's interest rate projections, and whether the semiconductor rally can continue to support Wall Street amid expectations of tighter monetary policy.
Source: Newsmaker.id
