Dow ends higher as chip stocks rally and Fed rate-hike fears ease

• Intel surged 7.1% on news of an Apple chip design and manufacturing partnership, lifting the Philadelphia Semiconductor Index and chipmakers like Nvidia (up nearly 3%) and Micron
• Nine of 18 Fed policymakers now expect rate increases in 2026, with markets pricing roughly 50% odds of a 25-basis-point hike in September and 20% odds of a 50-basis-point increase
• Oil prices fell to lowest levels since early March after the US and Iran extended their ceasefire by 60 days, resuming shipping traffic through the Strait of Hormuz

Market Summary: Dow Gains on Chip Rally, Fed Concerns Ease

Market Performance:

U.S. equities rebounded Thursday, with the Dow Jones Industrial Average rising 72.15 points (+0.14%) to close at 51,564.70. The S&P 500 gained 1.08% to 7,500.58, while the tech-heavy Nasdaq Composite surged 1.91% to 26,517.93.

Semiconductor Sector Leads:

Chip stocks powered the rally after President Trump announced Apple agreed to partner with Intel on U.S.-based chip design and manufacturing. Intel shares jumped 7%, while Nvidia climbed nearly 3% and Micron gained 4%. The Philadelphia Semiconductor Index significantly outperformed broader markets as investors continued favoring AI infrastructure and computing stocks.

Federal Reserve Outlook:

Markets recovered from Wednesday's selloff triggered by the Fed's hawkish stance under new Chair Kevin Warsh. The latest dot plot showed 9 of 18 policymakers expecting rate increases in 2026. According to CME's FedWatch tool, traders priced in a 50% probability of a 25-basis-point hike by September and 20% odds of a 50-basis-point increase.

Geopolitical and Economic Factors:

Oil prices fell to early March lows following a U.S.-Iran interim agreement extending their April ceasefire by 60 days, easing Middle East tensions and resuming traffic through the Strait of Hormuz. Weekly jobless claims declined, indicating subdued layoffs and supporting economic resilience.

Individual Movers:

Kroger and Accenture declined after disappointing earnings guidance. SpaceX shares fell for a second consecutive session as post-IPO euphoria cooled.

Market Context:

Thursday's session coincided with "triple witching"—the quarterly expiration of options and futures contracts—contributing to elevated trading volumes and volatility.