Dow opens 349 points higher as chip stocks rally on Iran deal optimism

• Intel surged 10% after Trump announced Apple would work with Intel on US chip design and manufacturing, lifting the semiconductor sector with Nvidia up 1.2% and Micron and Marvell gaining over 5%
• Market expectations for a September Fed rate hike jumped to 50% from 27% after officials signaled a more hawkish stance, with 9 of 18 policymakers projecting rate increases in 2026
• Oil prices fell to three-month lows as the US and Iran extended their ceasefire by 60 days, reducing inflation pressures and supporting risk sentiment despite monetary policy uncertainty

Market Summary

Market Performance:

US stocks opened significantly higher on Thursday, June 18, 2026, recovering from the previous session's losses. The Dow Jones rose 349 points (+0.68%), the S&P 500 gained 1.03%, and the Nasdaq climbed 1.18%, driven primarily by semiconductor sector strength.

Key Drivers:

*Geopolitical Development:* Optimism surrounding a temporary US-Iran peace agreement boosted sentiment. The interim deal extends an April ceasefire by 60 days, allowing continued negotiations. Oil prices fell to three-month lows, easing inflation concerns.

*Federal Reserve Outlook:* Markets rebounded despite hawkish signals from the Fed's first meeting under new Chair Kevin Warsh. While the benchmark rate remained unchanged, nine of 18 officials projected rate increases in 2026. CME FedWatch data shows 50% probability of a September quarter-point hike, up from 27% previously.

*Economic Data:* May retail sales exceeded expectations, with strong automobile purchases demonstrating consumer resilience despite higher gasoline prices.

Sector Highlights:

Semiconductors led gains, with the iShares Semiconductor ETF (SOXX) up 4.6%. Intel surged 10% following President Trump's announcement that Apple agreed to partner with Intel on US chip design and manufacturing. Nvidia gained 1.2%, while Micron and Marvell advanced over 5%.

Individual Movers:

• Smith & Wesson: +23% on higher Q4 sales
• Accenture: -15% after cutting revenue guidance despite announcing $4.18 billion in cybersecurity acquisitions

Market Context:

Investors also prepared for "triple witching"—the quarterly expiration of options and futures contracts—which typically increases volatility and trading volumes.