U.S. stocks closed higher on Thursday, June 18, recovering much of the previous day’s losses after Federal Reserve Chair Kevin Warsh rattled markets by signaling interest rates could rise this year. Semiconductors led the rebound, with Intel surging after President Donald Trump said the company would design and build chips in the United States alongside Apple.
The Nasdaq 100 led the major indexes, climbing about 2.4%, while the S&P 500 gained roughly 0.9%. The Dow Jones Industrial Average finished little changed but remained near record territory after giving back an earlier gain of more than 300 points. Trading remained volatile into the close as investors navigated quarterly “triple witching” options expiration ahead of Friday’s Juneteenth market holiday.
The rebound followed a sharp selloff Wednesday after Warsh’s first Federal Reserve meeting as chair. The Dow lost more than 500 points and the S&P 500 fell 1.2% after the Fed’s updated projections showed nine of 18 policymakers now expect at least one rate increase in 2026. Warsh emphasized the Fed’s commitment to “price stability,” a message markets interpreted as notably hawkish.
Thursday’s tone was far more optimistic.
Intel jumped roughly 10% on the Trump-Apple announcement. Micron Technology climbed about 8% ahead of earnings due June 24. Nvidia gained around 2%, while Advanced Micro Devices and Broadcom each advanced more than 4% as investors returned to AI-related semiconductor names.
Market Movers
Among Dow components, the biggest gainers included:
- Caterpillar: +3.7%
- Home Depot: +2.8%
- 3M: +1.7%
The weakest performers were:
- IBM: -5%
- Salesforce: -2.7%
- Chevron: -2.2%
Kroger suffered its worst trading session in nearly five years after narrowly missing Wall Street earnings expectations, highlighting continued pressure on consumer-focused retailers.
Analysts remained particularly bullish on memory-chip producers. TD Cowen analyst Krish Sankar reiterated a Buy rating on Micron and raised his price target to $1,500, citing robust demand for AI-related high-bandwidth memory. RBC Capital Markets increased its target to $1,200, while Aletheia Capital boosted its target to $1,600.
Meanwhile, Gene Munster of Deepwater Asset Management argued that planned Apple price increases reflect rising memory costs, suggesting consumers may soon see higher prices for electronic devices. Not all strategists agreed with the rally. UBS trading desks advised clients to “reduce risk meaningfully” in technology stocks following the sector’s powerful run this year.
Oil Falls, Volatility Eases
Oil prices declined after President Trump signed an interim agreement with Iran aimed at lowering energy costs. Improving navigation through the Strait of Hormuz and expectations for a broader agreement Friday helped ease supply concerns.
The drop in crude prices reduced pressure on gasoline costs heading into the summer driving season. Treasury yields, which surged Wednesday following the Fed meeting, stabilized Thursday.
With markets closed Friday for Juneteenth, investors now look ahead to next week. Key events include earnings from Micron and FedEx, along with the government’s updated first-quarter GDP report and May PCE inflation data, the Federal Reserve’s preferred inflation measure.
Those reports could determine whether Warsh’s warning about possible future rate hikes becomes the market’s next major concern.
JBizNews Desk
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