U.S. stock markets experienced a notable uptick on Thursday, driven by optimism surrounding a potential U.S.-Iran peace deal and a surge in Intel’s share price. The S&P 500 climbed 1.1%, while the Nasdaq 100 outperformed with a 2.5% rise. The Dow Jones Industrial Average added a modest 0.1%, reflecting positive sentiment across the board. The Russell 2000, an index that focuses on smaller companies, increased by 2%.
Investor enthusiasm was particularly bolstered by President Donald Trump’s announcement that Intel would collaborate with Apple Inc. to design and manufacture semiconductors. Intel’s shares soared by 10.6%, marking a significant gain that contributed to the technology sector’s overall increase of around 3%. Trump’s statement confirmed long-standing speculation about a partnership between the two tech giants.
Market analysts noted the upbeat mood among investors. Robert Conzo, CEO of The Wealth Alliance, highlighted the growing expectation of collaboration among companies driven by advancements in artificial intelligence (AI). He suggested that the Apple-Intel partnership could serve as a model for future business alliances within the tech industry.
In the exchange-traded fund (ETF) space, the SPDR S&P 500 ETF (SPY) saw a 1.2% rise, whereas the Invesco QQQ Trust (QQQ) ended the day with a 2.5% gain. Meanwhile, the SPDR Dow Jones Industrial Average ETF Trust (DIA) closed 0.3% higher. The VanEck Semiconductor ETF (SMH) surged significantly, up 6%, further reflecting the tech sector’s robust performance.
However, retail sentiment on platforms like Stocktwits remained cautiously optimistic, showcasing a ‘bullish’ outlook on major ETFs like SPY, QQQ, and DIA with varying levels of engagement.
Amid this market rally, oil prices experienced a slight decline, with both West Texas Intermediate (WTI) and Brent futures trading below the $80 per barrel mark. This drop was partially attributed to optimism about an impending U.S.-Iran peace agreement. A preliminary accord signed by Trump and Iranian President Masoud Pezeshkian aims to navigate conflicts between the two nations and restore the flow of oil through the strategically vital Strait of Hormuz. The proposed agreement includes a timeline for the U.S. to lift its naval blockade of Iran, contingent upon compliance from the Iranian government.
Despite the hopeful developments, U.S. Defense Secretary Pete Hegseth cautioned that Washington stands ready to reinstate strict measures if Iran does not adhere to the terms of the agreement.
In terms of trending stocks, several companies made headlines throughout the day. SpaceX saw a positive adjustment in its valuation from Oppenheimer following its acquisition of the AI coding firm Cursor, while Amazon’s share price rose amid reports that the company is negotiating to sell its custom AI chips to other firms. Ondas announced its sixth acquisition of the year, aimed at enhancing its capabilities in drone technology and critical infrastructure monitoring. Netflix has secured a significant multi-year partnership with Proximity Media, taking a step forward in its creative endeavors. Meanwhile, Take-Two Interactive Software generated buzz with an announcement that preorders for the much-anticipated video game Grand Theft Auto VI would commence on June 25.
Overall, the day reflected a complex interplay of geopolitical developments, corporate collaborations, and investor sentiment, culminating in a robust performance by U.S. stock indices.
