NEW YORK (AP) — Stocks rose on Wall Street Thursday, taking back most of their losses from a day earlier, and are on track to notch weekly gains.
The S&P 500 rose 1.1%. The Dow Jones Industrial Average rose 302 points, or 0.6%, as of 10:49 a.m. Eastern. The Nasdaq composite jumped 1.4%. Every major index is on track for weekly gains. U.S. markets will be closed Friday for Juneteenth.
The gains are helping to cut losses from a day earlier that were driven by anticipation that the Federal Reserve will likely raise interest rates this year in an effort to fight inflation. Bond yields are pulling back. That, along with falling oil prices, is relieving much of the pressure on stocks.
The gains were broad and being led by technology stocks. Intel surged 7% 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 2.2% and Micron Technology surged 7.7%.
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 6.5% following a 4.9% loss Wednesday.
Crude oil prices continued to fall 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, fell 3% to $77.20 per barrel. U.S. benchmark crude fell 3.4% to $73.46 per barrel.
Easing oil prices are relieving pressure on companies that rely heavily on fuel. Airlines had some of the bigger gains. American Airlines rose 4% and United Airlines rose 4%. Cruise line company Carnival jumped 3.4%.
Energy companies, though, lost ground on falling oil prices. Exxon Mobil fell 2.7% and Chevron fell 2.1%.
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 had 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.
Rising energy costs have also 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 will likely raise the rate at least once by December.
That prompted a jump in bond yields on Wednesday, but they eased on Thursday.
The yield on the 10-year Treasury fell to 4.43% from 4.49% late Wednesday. The yield on 2-year Treasury, which more closely tracks action by the Fed, fell to 4.15% from 4.20% late Wednesday.
Markets were mixed in Europe and Asia.
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Senior Producer Mayuko Ono contributed to this report.
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