The stock market bounced back to finish a winning week as technology stocks and semiconductor shares led a broad recovery, with the S&P 500 gaining 1.08% and the Nasdaq Composite surging 1.91% on Thursday, the final trading day before the Juneteenth holiday closed markets on Friday.
For the week ending June 18, the S&P 500 advanced 0.93% while the Nasdaq climbed 2.43%, according to Reuters. The gains came after a volatile week that began with sharp declines but reversed course as investors grew more optimistic about inflation easing and corporate earnings prospects. Technology stocks led all major sectors with a 4.4% weekly gain, driven by strength in semiconductor shares, according to Financial Synergies Wealth Advisors.
The semiconductor index rallied 6.4% on Thursday alone, with Intel jumping 10.6% after U.S. President Donald Trump announced that Apple had agreed to work with Intel to design and manufacture chips in the United States, according to Reuters. The chip sector’s outperformance marked a sharp turnaround from earlier in June, when a strong jobs report had spooked investors into betting on Federal Reserve rate hikes.
A U.S.-Iran peace agreement signed Thursday helped ease inflation concerns that had weighed on markets. The two sides announced an interim deal to extend a ceasefire and reopen the Strait of Hormuz, a critical shipping lane where nearly 20% of the world’s oil passes through. Oil prices fell sharply on the news, with crude sliding back into the mid-$70s for the first time since early March, easing the inflation pressures that have dominated investor sentiment throughout 2026, according to Financial Synergies.
The recovery came despite the Federal Reserve’s shift toward a more hawkish stance. New Fed Chair Kevin Warsh left interest rates unchanged at 3.50% to 3.75% but signaled that the central bank now expects rates to finish 2026 higher than current levels. Nine of eighteen Fed officials now forecast at least one rate hike before year-end, according to Financial Synergies. Traders priced in roughly a 50% chance of a 25-basis-point rate hike by September, according to CME Group’s FedWatch tool cited by Reuters.
Market breadth improved alongside the gains. The Dow Jones Industrial Average rose 72.15 points, or 0.14%, to 51,564.70 on Thursday, marking its third consecutive weekly gain. The small-cap Russell 2000 index climbed 2% and reached a record closing high. On the New York Stock Exchange, advancing issues outnumbered decliners by a 1.72-to-1 ratio, according to Reuters.
The weekly rebound reflected what strategists called a balancing of competing forces. Tony Welch, chief investment officer at SignatureFD, told Reuters that “markets got spooked by Warsh yesterday essentially promising to contain inflation,” but noted that “all together, the package of data is still supportive whether or not the Fed has become a little bit more hawkish.” Economic data released during the week showed strong consumer spending and low jobless claims, reinforcing confidence in near-term growth despite inflation concerns.
Sources
- Reuters — S&P 500, Nasdaq, and Dow closing levels and weekly gains on June 18; semiconductor index performance; Intel stock move; U.S.-Iran peace deal and oil prices; Fed rate expectations; market breadth data
- Financial Synergies Wealth Advisors — Weekly market recap with sector performance (Technology +4.4%), Fed policy shift, U.S.-Iran agreement details, consumer spending data, and inflation context
- Trading Economics — S&P 500 closing at 7,501 points on June 19 with 1.08% gain
- HDFC Sky — Weekly market wrap confirming Nasdaq 1.91% gain, S&P 500 1.08% gain, and Dow record close
