Trump Announcement LIfts Intel More Than 10%

Stocks closed higher on Wall Street on Thursday, taking back most of their losses from a day earlier.

• 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. US markets will be closed Friday for Juneteenth.

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. On Thursday, stocks faced less pressure as bond yields eased and oil prices spent most of the day falling, the AP reports.

Technology stocks had some of the biggest gains and the most influence on the broader market's rise. Intel surged 10.6% after President Trump announced that the semiconductor giant will make chips for Apple in the US. 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 US 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. US 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%.

Higher oil prices have been weighing on markets throughout the US 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.

• Rising energy costs have been putting more pressure on already hot inflation. The average price of gasoline in the US 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.