US Stock Market Today: Nasdaq, S&P 500 Rebound as Intel Sparks Chip Rally on June 18

U.S. stock markets bounced back on Thursday, June 18, 2026, recovering much of the previous day's losses as investors returned to technology stocks and welcomed signs of easing pressure from both bond yields and oil prices. The rebound came after Wednesday's sell-off, which was triggered by concerns that the Federal Reserve could raise interest rates later this year under Chair Kevin Warsh.

The recovery was broad-based, but gains were strongest in technology and semiconductor stocks. Investors also reacted positively to developments in the Middle East after the United States and Iran moved forward with an agreement aimed at reducing tensions and maintaining shipping access through the Strait of Hormuz. The news helped push oil prices lower and improved overall market sentiment.

By afternoon trading, the S&P 500 was up about 1.1%, while the Nasdaq Composite gained roughly 1.4%. The Dow Jones Industrial Average rose around 0.6%, adding more than 300 points as investors stepped back into equities following Wednesday's decline.

The gains marked a sharp change in mood from the previous session, when investors were unsettled by the Federal Reserve's updated economic outlook. While policymakers kept interest rates unchanged, markets reacted to signals that rate hikes remained possible if inflation stays elevated during the second half of the year.

Investors had spent much of Wednesday reassessing expectations for monetary policy after Warsh's first major policy meeting as Federal Reserve chair. The possibility of higher borrowing costs weighed heavily on growth and technology stocks, leading to a broad market decline. However, Thursday's trading suggested that investors were once again focusing on corporate growth opportunities and improving economic conditions.

Major U.S. Indexes Recover After Wednesday's Sell-Off

Thursday's rally helped major Wall Street benchmarks recover a large portion of the losses recorded after the Federal Reserve meeting. Investors found comfort in easing Treasury yields, lower oil prices, and renewed strength in the technology sector.

The Nasdaq Composite outperformed other major indexes due to strong gains across semiconductor stocks, while the S&P 500 reflected broad-based buying across several sectors.

The Dow Jones Industrial Average also moved higher as investors returned to blue-chip stocks ahead of the Juneteenth market holiday.

Market Index	June 18 Performance
S&P 500	+1.1%
Nasdaq Composite	+1.4%
Dow Jones Industrial Average	+0.6%
Dow Point Gain	Approx. +302 Points

Semiconductor Stocks Lead the Market Higher

The technology sector was the biggest contributor to Thursday's gains, with semiconductor companies leading the advance.

Intel emerged as one of the market's strongest performers after news that Apple plans to work with the company to design and manufacture chips in the United States. The announcement was viewed as a major boost for Intel's long-term business prospects and strengthened confidence in domestic semiconductor manufacturing. Intel shares surged roughly 7% to 10% during the session.

The positive momentum spread across the semiconductor industry. Micron Technology jumped more than 7%, while Nvidia added over 2%. Other chipmakers also moved higher as investors increased exposure to a sector that continues to benefit from artificial intelligence investment, data center expansion, and government support for domestic manufacturing. The Philadelphia Semiconductor Index climbed more than 6%, reflecting strong buying interest throughout the industry.

The strong performance of semiconductor stocks played an important role in lifting the Nasdaq Composite, which has a heavy concentration of technology companies. Many investors viewed the Intel-Apple partnership as another sign that demand for advanced chips remains strong despite concerns about interest rates.

Oil Prices Decline as U.S.-Iran Agreement Improves Sentiment

Another major factor supporting the market was the decline in oil prices.

Brent crude oil fell nearly 3% after reports of progress in diplomatic discussions between the United States and Iran. The agreement reduced fears of supply disruptions in the Strait of Hormuz, one of the world's most important energy shipping routes. Lower oil prices are often viewed positively by investors because they can help reduce inflation pressures and lower costs for businesses and consumers.

The drop in energy prices helped offset concerns created by the Federal Reserve's inflation outlook. Investors interpreted the move as a sign that some inflation pressures could ease in the coming months if energy markets remain stable.

Market participants have closely watched developments in the Middle East over recent weeks because disruptions in the region can quickly affect global energy supplies. Thursday's progress toward a longer-term agreement provided reassurance that the risk of a major supply shock had decreased, at least for now.

Lower Treasury Yields Support Technology Stocks

Bond markets also helped improve sentiment.

The yield on the benchmark 10-year U.S. Treasury note eased after climbing sharply following the Federal Reserve's announcement on Wednesday. Lower yields generally support stock valuations because they reduce the attractiveness of bonds relative to equities and lower financing costs for companies.

Technology companies often benefit the most from declining yields because their valuations are more sensitive to changes in interest rates. The pullback in Treasury yields therefore provided an additional boost to the Nasdaq and broader technology sector.

Investors remain focused on future inflation data and economic reports that could influence the Federal Reserve's next policy decision. While markets have become more cautious about the possibility of rate hikes, Thursday's rebound showed that investors are still willing to buy stocks when other economic conditions improve.

SpaceX Extends Losses Following Market Debut

Not all major stocks participated in the rally.

SpaceX shares continued to decline following the company's highly anticipated public market debut last week. The stock fell more than 6%, extending losses from the previous session as investors took profits after the initial excitement surrounding the listing. Despite the decline, SpaceX remains one of the largest publicly traded companies in the United States by market value.

Recent volatility in newly listed companies highlights the challenges that can follow major public offerings. While investor enthusiasm can drive strong early gains, stocks often experience sharp swings as markets determine fair valuations and long-term growth expectations.

What Investors Are Watching Next

Thursday's session was the final trading day of the week because U.S. financial markets will remain closed on Friday, June 19, in observance of Juneteenth. Investors therefore used the shortened trading week to adjust positions ahead of the holiday break.

Looking ahead, markets will continue monitoring inflation trends, Treasury yields, Federal Reserve commentary, and developments in the Middle East. The direction of oil prices and the strength of the semiconductor sector are also likely to remain important drivers of investor sentiment during the coming weeks.

For now, Thursday's rebound suggests that investors remain confident in the broader market despite uncertainty surrounding interest rates. Strong gains in technology shares, easing oil prices, and lower Treasury yields helped Wall Street recover from one of its sharpest setbacks in recent weeks, allowing major indexes to finish the shortened week on a stronger note.