U.S. stock indexes surged higher on Thursday, led by a sharp rally in technology as crude oil slid after the U.S. signed a preliminary deal with Iran aimed at easing tensions around the Strait of Hormuz. The S&P 500 rose 1.08%, the Dow gained 0.14%, and the Nasdaq 100 jumped 2.48%, while September E-mini S&P futures and September E-mini Nasdaq futures also climbed.
Investors linked the risk-on move to expectations that reopening shipping lanes would reduce inflation pressure, a view reinforced by weaker oil prices and lower Treasury yields. Chip stocks outperformed broadly, while energy and some IT services names fell as crude moved to a 3.5-month low.
Key takeaways
- Price move: The S&P 500 closed up 1.08% and the Nasdaq 100 gained 2.48%.
- Catalyst: A preliminary U.S.-Iran peace deal raised hopes that the Strait of Hormuz will reopen, pulling oil prices lower.
- Market implication: Softer crude supported bonds and helped shift sentiment toward growth equities.
- Sector split: Semiconductors led gains, while energy and some IT services stocks lagged on company-specific developments and oil weakness.
- Event dynamics: Trading was volatile around “triple witching” with June options, futures, and derivatives expiring.
What drove the rally
According to the report, Thursday’s broad advance followed President Trump’s signing of a preliminary U.S.-Iran deal Wednesday night intended to end the U.S.-Iran conflict. The move was associated with lower crude prices and reduced inflation concerns, which in turn supported higher equity risk appetite.
Oil weakness also fed through to rates. Data in the article showed the 10-year Treasury yield fell by 4 basis points to 4.45%, consistent with markets discounting less near-term inflation pressure. Investors also appeared to welcome supportive weekly economic signals: initial unemployment claims fell by 4,000 to 226,000, near expectations, and the June Philadelphia Fed business outlook survey rose by 10.7 to 10.3, beating expectations.
Market reaction across sectors
Chipmakers led the upside as semiconductor sentiment improved alongside the macro backdrop. The article said the iShares Semiconductor ETF rose more than 7% to a record high, while Intel shares closed up more than 10% after Trump said the company would work with Apple to design and produce semiconductors domestically. Micron and KLA also rose sharply, and multiple other semiconductor names finished higher.
Other cyclicals and rate-sensitive areas participated as well. Power equipment stocks moved higher, and airline and cruise operators gained as the decline in WTI crude reduced fuel-cost expectations. The report cited broad strength across major airlines and cruise lines, with several closing up more than 2% to 3%.
On the downside, energy-related stocks fell as crude slid further. The article pointed to weakness across oil service and upstream names, including SLB, ConocoPhillips, and Halliburton, alongside large integrated and independent producers.
IT services stocks were also a drag. The S&P 500’s leading loser in the report was Accenture, which fell 17% after its Q4 revenue forecast came in below consensus. The report tied the selloff to renewed concerns about the sector’s exposure to AI-driven disruption. Additional consulting and IT services names—such as Cognizant, Globant, and IBM—also ended the day lower.
Rates, commodities and what investors were watching
According to the article, Treasury price action reflected the same oil-to-inflation channel. Sept. 10-year T-notes closed up modestly, while the 10-year yield declined, helped by lower crude. The report added that falling WTI prices pushed 10-year inflation expectations to a 6-month low of 2.218%.
Still, the bond rally was described as limited by equity strength, which reduced safe-haven demand. The article also noted carryover effects from Wednesday, when the Fed raised its 2026 core PCE estimate and projected higher rates later in the year.
In Europe, the report said European government bond yields moved higher, including the 10-year German bund and the 10-year UK gilt. It also cited comments from ECB Governing Council member Martin Kocher, who said Eurozone consumer prices would remain elevated for some time and that the ECB is prepared to act to ensure inflation returns to its 2% target. In the UK, the Bank of England kept its policy rate unchanged and characterized the crude move as encouraging while warning about uncertainty around energy prices.
Commodity pricing remained central to the narrative. The report stated WTI crude fell to a new 3.5-month low after the U.S. extended its ceasefire with Iran for 60 days, setting the stage for further negotiations. It also referenced expectations that resuming vessel traffic could release more than 100 oil-laden tankers from the Persian Gulf, potentially increasing effective supply. Separately, Goldman Sachs cut its Brent price forecast for Q4 to $80 per barrel from $90 and expected Persian Gulf exports to return to pre-war levels by the end of July.
Company-specific movers and earnings-related pressure
The market’s performance was shaped not only by macro developments but also by individual earnings and guidance. The report said Kroger shares fell after reporting Q1 adjusted EPS of $1.58, below consensus, and issuing a 2027 adjusted EPS outlook with a midpoint slightly below expectations. Steel Dynamics declined after forecasting Q2 EPS below consensus, and FactSet Research Systems slid following a downgrade by Rothschild & Co.
Other notable single-name moves included Novocure’s sharp drop after a Phase 3 trial did not meet its primary endpoint, while Centrus Energy rose after signing a letter of intent to supply domestic uranium fuel to Oklo. Talen Energy rose after Goldman Sachs initiated coverage with a buy recommendation, and Integra LifeSciences gained following an Argus upgrade.
What to watch next
With equities having repriced around the oil-and-inflation channel, investors will likely focus on follow-through in crude prices and the next set of rate expectations ahead of the next policy decision. The article also noted that the market move may have been amplified by triple witching dynamics tied to June contract expirations and a Juneteenth market closure. The coming sessions will also bring additional earnings and guidance, with the next scheduled reports listed for June 22, 2026: Lifezone Metals and Outdoor Holding.
