Stocks rise on Wall Street, erasing much of their loss from a day
earlier
[June 19, 2026] By
DAMIAN J. TROISE
NEW YORK (AP) — Stocks rose on Wall Street Thursday and erased most of
their losses from a day earlier to notch weekly gains.
The market's reversal was powered by sharp gains for big technology
companies. The decline on Wednesday was driven by anticipation that the
Federal Reserve will likely raise interest rates this year in an effort
to fight inflation.
On Thursday, stocks faced less pressure as bond yields eased and oil
prices spent most of the day falling.
The S&P 500 rose 80.48 points, or 1.1%, to 7,500.58. The Dow Jones
Industrial Average rose 72.15 points, or 0.1%, to 51,564.70. The Nasdaq
composite surged 496.28 points, or 1.9%, to 26,517.93. Every major index
notched weekly gains.
U.S. markets will be closed Friday for Juneteenth.
Technology stocks had some of the biggest gains and the most influence
on the broader market's rise. Intel surged 10.6% after President Donald
Trump announced that the semiconductor giant will make chips for Apple
in the U.S. Other big semiconductor companies gained ground. Nvidia rose
3% and Micron Technology jumped 8.7%.
On the losing end, SpaceX fell for the second straight day since its
ballyhooed debut on the U.S. stock market last week. The Elon Musk-led
rocket maker and AI company was down 3.6% following a 4.9% loss
Wednesday.
Oil prices wavered after the United States and Iran signed an agreement
to end their war and reopen the Strait of Hormuz to oil tanker traffic.
Brent crude, the international standard, spent most of the day lower
before settling 0.4% higher at $79.85 per barrel. U.S. benchmark crude
fell 0.2% to $75.85 per barrel.
Airlines had some of the bigger gains. American Airlines rose 3.7% and
United Airlines rose 2.1%. Cruise line company Carnival jumped 3.2%.
Energy companies lost ground. Exxon Mobil fell 2.1% and Chevron fell
2.2%.
Prices for crude oil are still above roughly $70 per barrel from before
the war, but are well below the $100-plus price from a few weeks ago.
Higher oil prices have been weighing on markets throughout the U.S. war
with Iran. The current deal between the nations waives sanctions against
Iran and allows it to sell its oil freely. It also opens up the Strait
of Hormuz, where a fifth of the world’s oil supply is shipped.
“While investors are welcoming the agreement as a constructive step for
geopolitical risk, uncertainty remains elevated around potential
flare-ups, the pace of shipping normalization, control of the waterway,
the cost of access, and the path forward for Iran’s nuclear program.”
said Adam Turnquist, chief technical strategist for LPL Financial, in a
research note.
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Trader Matthew Cheslock, right, works on the floor of the New York
Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)
 Rising energy costs have been
putting more pressure on already hot inflation. The average price of
gasoline in the U.S. has dipped below $4 a gallon, but is still 25%
higher from a year ago. Prices have been rising for a wide range of
goods because of higher shipping costs.
Hotter inflation prompted the Federal Reserve to shift course from
cutting its benchmark interest rate to likely raising rates by the
end of the year. Lower interest rates can boost the economy by
making borrowing easier for businesses and households, but it also
tends to stoke inflation.
The Fed has been trying to balance its job of curbing inflation
while supporting employment growth. The jobs market has remained
relatively strong amid rising inflation, with low unemployment and
solid job growth.
The central bank closed its two-day meeting on Wednesday by
maintaining its benchmark interest rate at its current level. But it
signaled that it might raise the rate at least once by December.
“This shift in the risk distribution helps explain why around half
of the committee thought that an interest-rate hike this year might
be needed,” said James McCann, senior economist at Edward Jones, in
a research note.
The Fed's stronger signal for an eventual rate hike prompted a jump
in bond yields on Wednesday, but they eased on Thursday.
The yield on the 10-year Treasury fell to 4.45% from 4.49% late
Wednesday. The yield on 2-year Treasury, which more closely tracks
action by the Fed, fell to 4.18% from 4.20% late Wednesday.
Markets were mixed in Europe after closing lower Asia.
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Senior Producer Mayuko Ono contributed to this report.
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