U.S. stocks rebounded on Thursday, June 18, 2026, as investors sought to recover losses triggered by the Federal Reserve’s more hawkish outlook on interest rates. Major indices climbed, with technology shares—particularly semiconductor stocks—leading the gains.
Strong Gains Across Major Indices
The S&P 500 rose 1.05%, the Nasdaq surged 1.91%, and the Dow Jones Industrial Average gained 72 points—or 0.14%. The broader rally was anchored by a sharp recovery in chip-related equities.
Intel Surge Ignites Semiconductor Rally
Intel jumped nearly 10% after former President Donald Trump announced the company would collaborate with Apple on designing chips in the United States. The news acted as a catalyst for the wider semiconductor sector: Nvidia rose more than 2%, Micron Technology gained over 9%, and the iShares Semiconductor ETF climbed more than 6%.
This momentum came amid renewed investor interest in AI infrastructure plays, following Wednesday’s broad sell-off. Analysts interpreted the Intel–Apple partnership as a sign that major tech firms are deepening cooperation around artificial intelligence hardware and next-generation infrastructure needs.
Robert Conzo, CEO of The Wealth Alliance, told CNBC that optimism is growing around corporate partnerships tied to AI infrastructure—and their ripple effects across multiple industries. He added that the Intel–Apple announcement could serve as a preview of similar strategic moves to come.
Fed’s Cautious Tone Casts Shadow
The rally followed a day of market pressure after the Federal Reserve’s first meeting under new Chair Kevin Warsh. The updated Summary of Economic Projections (SEP) showed nine of 18 Fed officials now expect at least one rate hike in 2026—up from previous forecasts. Warsh notably declined to include his own rate projection, adding uncertainty. Yet his repeated emphasis on achieving “price stability” was widely read as a more aggressive stance on inflation than his predecessor’s.
Weekly Outlook Remains Positive
Despite near-term rate concerns, the weekly trend remains favorable. The S&P 500 is up 0.8% week-to-date and on track for its 11th gain in the past 12 weeks. The Dow is also up 0.8% for the week, while the Nasdaq has risen 2%—underscoring technology’s continued leadership role in the market.