Tech Stocks Rebound Amid Fed's Hawkish Signals: Iran Ceasefire Alters Today's New York Market Sentiment

On June 18 (local time), U.S. equity markets recouped much of the previous day’s sharp losses. The S&P 500 closed up 1.1% at 7,500.58, the Nasdaq rose 1.9% to 26,517.93, and the Dow Jones Industrial Average edged up 0.1% to 51,564.70. Although the Federal Reserve held its benchmark rate at 3.50–3.75%, nine of the 19 Fed officials signaled the possibility of at least one rate hike before year-end, leaving some pressure on yields. However, Treasury yields dipped slightly on the day, sparking a relief rally in growth stocks.

According to the U.S. Department of Labor, weekly initial jobless claims fell to 226,000 last week, down from the prior week and remaining at historically low levels, underscoring the labor market’s resilience. The Philadelphia Fed manufacturing index also stayed in expansion territory in June, supporting expectations for a soft landing. In individual stocks, President Donald Trump’s announcement of U.S. production for Intel’s Apple-designed chips sent Intel shares up over 10%, while Nvidia and Micron likewise gained, broadening semiconductor-sector buying. In contrast, SpaceX—after an initial post-IPO surge—saw two days of pullbacks.

Global developments also aided the turnaround. The U.S. and Iran signed an initial peace accord to end the conflict and agreed to reopen the Strait of Hormuz, easing concerns that had driven Brent crude above $100 per barrel. Brent traded around $79.85 a barrel, relieving some upward pressure. Fuel-sensitive sectors such as airlines and cruise lines outperformed, while energy stocks lagged. Still, oil remains above pre-conflict levels, and the Fed has reiterated its priority on price stability and the potential for additional hikes this year. Investors will need to keep monitoring inflation, energy-price trajectories, and any further hawkish Fed commentary for their impact on growth-stock valuations. U.S. markets will be closed on June 19 for the Juneteenth holiday, allowing a long weekend for reassessment of these variables.