[New York Stock Exchange] Hormuz Strait Opens and Semiconductor Investor Sentiment Soars... Nasdaq Closes Up 2%

International Oil Prices Edge Down
Tech Stocks Rise on Intel and Apple Partnership News

On June 18 (local time), all three major U.S. stock indexes closed higher on the New York Stock Exchange. Investor sentiment, particularly for technology stocks, improved following news that the Strait of Hormuz would remain open for 60 days, easing inflationary pressures, and reports of a semiconductor production partnership between Intel and Apple.

On the New York Stock Exchange, the blue-chip Dow Jones Industrial Average closed at 51,564.70, up 72.15 points (0.14%) from the previous trading day. The S&P 500, which focuses on large-cap stocks, rose by 80.48 points (1.08%) to 7,500.58, while the tech-heavy Nasdaq jumped by 496.27 points (1.91%) to close at 26,517.93.

Inside the New York Stock Exchange. New York, USA – Photo by Yoonju Hwang, Correspondent

The main driver behind the day's gains was the news of collaboration between Intel and Apple. U.S. President Donald Trump announced on Truth Social in the morning that "Apple has agreed to partner with Intel to design and manufacture chips within the United States."

He added, "The technology the world relies on was invented in America. We all remember 'Intel Inside,'" emphasizing that chip design and production should take place in the United States.

He continued, "When I secured my second term, it became clear that America needed to reclaim the semiconductor industry," and added, "We design everything, but now we must produce it here as well."

As a result, Intel surged more than 9%, boosting investor sentiment toward the semiconductor sector. Other major semiconductor stocks also rose sharply, with Nvidia gaining 2.95%, Micron up 8.70%, Apple up 0.70%, and TSMC rising 6.94%.

Robert Conzo, CEO of Wells Alliance, analyzed, "The outlook for corporate partnerships is brightening because of the impact of artificial intelligence (AI) infrastructure and AI on various competitive industries," and added, "The collaboration between Apple and Intel serves as an indicator of what could happen in the future."

The previous day, the Federal Reserve held its benchmark interest rate steady but maintained a strong hawkish (tightening) stance. Although the market initially showed mixed trading, concerns over inflation eased as the memorandum of understanding (MOU) between the U.S. and Iran took effect earlier than expected. Reports that the U.S. would lift its maritime blockade on Iran and that the Strait of Hormuz would be fully and freely opened for 60 days during follow-up negotiations contributed to this sentiment.

President Trump declared on Truth Social that "oil is flowing," while Vice President J.D. Vance dispelled concerns that Iran might charge tolls on ships passing through the Everest Strait, a key energy transport route, thereby easing worries about energy supply disruptions.

Analysts noted that, if the agreement is finalized, the pressure on energy costs and inflation could be significantly alleviated. Ian Lyngen of BMO Capital Markets said, "Progress in resuming crude oil supply from the Persian Gulf supported the stock market rally," and added, "Lower energy costs eased future inflation concerns and led to a meaningful decline in long-term government bond yields."

International oil prices edged down slightly. On the New York Mercantile Exchange, July delivery West Texas Intermediate (WTI) crude settled at $76.64 per barrel, down 0.20% from the previous session. Brent crude on the ICE Futures Exchange closed at $79.41 per barrel, down 0.18% from the previous session.

Fawad Razaqzada of Forex.com told CNBC that if the downward trend in energy costs continues to be reflected in inflation data, the Fed would have grounds to keep rates on hold for a prolonged period, rather than raising them.

He stated, "We expect inflation to gradually ease over the coming months, allowing the Fed to maintain its current policy stance rather than implementing additional tightening measures."

Meanwhile, the Bank of England, the UK's central bank, described the recent decline in oil prices as "encouraging" and kept its policy rate unchanged at 3.75%. However, two out of nine policy committee members argued for an immediate 0.25 percentage point rate hike due to ongoing concerns about persistent inflation.

This content was produced with the assistance of AI translation services.