Finance

Technology shares led the market rally, with the Philadelphia Semiconductor Index advancing more than 6% to reach a record high. Intel shares jumped over 10% following news of a major domestic chip manufacturing partnership with Apple, while other industry leaders like Nvidia and Micron also saw substantial gains. This surge helped offset broader concerns regarding potential price increases for consumer electronics due to rising memory chip costs.

Despite the market's recovery, a more hawkish tone from the Federal Reserve under new Chair Kevin Warsh has kept investors cautious. Recent projections show nearly half of policymakers now anticipate at least one interest rate hike in 2026 to combat persistent inflation. Treasury yields were mixed in response, with the two-year yield rising to its highest level in over a year while longer-term yields eased slightly.

Crude oil prices fell and gasoline stayed below $4 a gallon after the U.S. and Iran signed an interim pact to wind down their conflict. The reopening of the Strait of Hormuz is expected to restore global oil flows and mitigate significant inflationary risks associated with energy supply. While beneficial for inflation outlooks, this drop led to weakness in the energy sector, with majors like Exxon Mobil and Chevron closing lower.