Finance

Chipmaker stocks experienced a significant rally after reports surfaced of a strategic domestic manufacturing partnership between Intel and Apple. Intel shares jumped as much as 10%, leading a broader surge in the Philadelphia Semiconductor Index to a record high. Other major industry players, including Nvidia and Micron Technology, also saw notable gains as the market shifted focus toward domestic semiconductor production and growth.

In the first policy meeting led by Chairman Kevin Warsh, the Federal Reserve maintained current interest rates but signaled a definitive hawkish turn. Projections from the committee indicated that half of the policymakers now expect at least one rate hike before the end of 2026 to combat persistent inflation. This shift in tone prompted a rise in short-term Treasury yields and strengthened the U.S. dollar against major international currencies.

Global oil prices continued their downward trend following the signing of a deal between the U.S. and Iran aimed at ending hostilities. The agreement includes provisions to reopen the Strait of Hormuz, which is expected to normalize crude oil traffic and alleviate global inflationary pressures. Consequently, Brent crude fell toward pre-war levels, and average U.S. gasoline prices dropped below $4 a gallon for the first time in two months.