US close: Stocks rebound on US-Iran deal, Intel jumps

(Sharecast News) - US stocks mostly bounced back on Thursday, recovering much of the prior day's losses after Washington and Tehran signed a deal to end their months-long conflict.

Stocks had fallen sharply on Wednesday after a hawkish statement from the Federal Reserve, which opened the door to an interest rate hike this year due to growing inflationary pressures, causing bond yields to rise.

However, the S&P 500 jumped 1.1% on Thursday, while the Nadsaq surged 1.9%, with both having fallen 1.3% the day before. The Dow rose just 0.1% after falling 1.0% previously.

Lifting sentiment across Wall Street was the news that the US and Iran officially have signed a deal to end the war and reopen the vital Strait of Hormuz, with president Donald Trump saying the agreement was made to avoid an "economic catastrophe".

The agreement initially caused another slide in oil prices, though losses were mostly erased by the close of play, with crude now sitting close to levels not seen since before the Iran war began in early March. Brent was up 0.4% at $79.85, having touched a low of $76.54 earlier on, while WTI crude fell 0.2% to $76.60.

Notably, the average price for a gallon of gasoline across the US fell by the $4 mark for the first time since April, according to data from the AAA.

Russ Mould, investment director at AJ Bell, said that the recent leg down in oil prices "has huge significance for inflation and interest rates, as well as business, consumer and investor sentiment. It takes the pressure off industries and households and is hugely positive for global economic growth."

Investors were still digesting the Fed's policy decision and conference on Wednesday evening. While the central bank left monetary policy unchanged, new chief Kevin Warsh said policymakers were still "unambiguously and unanimously" committed to bringing inflation back to the Fed's 2% target and "will deliver price stability".

"The CME's FedWatch Tool is now predicting an 85% probability of at least one 25 basis point rate hike before year-end. This is up from 60% ahead of the Fed statement," said David Morrison, senior market analyst at Trade Nation.

In other economic news, US initial jobless claims fell more or less in line with expectations last week, according to figures released on Thursday by the Labor Department. In the week to 13 June, jobless claims fell by 4,000 from the previous week's revised level to 226,000. Economists were expecting a dip to 225,000 from the 229,000 initially reported.

Market movers

Shares in Accenture dropped 18% after the consultancy firm disappointed with its current-quarter guidance. The Dublin-based company said it expects to generate revenues of $17.75bn-18.40bn for the fiscal fourth quarter, representing 1-5% growth in local currencies but short of the consensus forecast of $18.47bn. Accenture also announced a $4.2bn spending spree to beef up its cyber operations with three separate acquisitions.

Kroger also fell 8% after a mixed batch of fiscal first-quarter results. The grocery chain beat forecasts with a 2% increase in fiscal first-quarter sales to $46.12bn, but adjusted earnings per share of $1.58 missed analysts' estimates by a penny as margins fell year-on-year. Chief executive Greg Foran said he was "pleased" with the results but acknowledged "we know there is more work do".

Shares in Intel soared 12% after Donald Trump posted on Truth Social that Apple had agreed to partner with the US tech firm on semiconductor design, though neither company has so far commented on the president's post. A partnership would help bolster Intel's manufacturing business, while for Apple, it would help diversify its supplier base.

Oil stocks were firmly lower following the recent fall in crude prices, including ConocoPhillips, Chevron and Occidental Petroleum.

Dow Jones - Risers

Intel Corp. (INTC) $133.99 12.48%

Caterpillar Inc. (CAT) $985.82 3.13%

Walt Disney Co. (DIS) $103.89 3.00%

Nike Inc. (NKE) $45.20 2.29%

Home Depot Inc. (HD) $334.28 2.08%

3M Co. (MMM) $160.60 0.84%

Cisco Systems Inc. (CSCO) $119.54 0.72%

Travelers Company Inc. (TRV) $307.81 0.57%

Unitedhealth Group Inc. (UNH) $400.96 0.36%

Dow Jones - Fallers

International Business Machines Corporation (CDI) (IBM) $249.10 -5.05%

Amgen Inc. (AMGN) $337.60 -2.73%

Johnson & Johnson (JNJ) $228.39 -2.48%

JP Morgan Chase & Co. (JPM) $325.22 -2.47%

Dow Chemical Co. (DOW) $31.73 -2.37%

Chevron Corp. (CVX) $173.63 -2.23%

Microsoft Corp. (MSFT) $379.40 -2.18%

Salesforce.Com Inc. (CRM) $151.78 -2.09%

McDonald's Corp. (MCD) $278.61 -1.84%

Merck & Co. Inc. (MRK) $113.87 -1.40%

S&P 500 - Risers

Carmax Inc. (KMX) $53.66 13.16%

Intel Corp. (INTC) $133.99 12.48%

Corning Inc. (GLW) $194.92 11.13%

Micron Technology Inc. (MU) $1,133.99 8.79%

Broadcom Inc. (AVGO) $411.35 6.72%

Under Armour Inc. Class A (UAA) $6.06 6.32%

Under Armour, Inc. (UA) $5.87 6.15%

Take-Two Interactive Software Inc. (TTWO) $239.28 5.22%

Stanley Black & Decker Inc. (SWK) $86.75 5.19%

KLA-Tencor Corp. (KLAC) $259.56 4.93%

S&P 500 - Fallers

Accenture Plc (ACN) $127.98 -17.97%

Cognizant Technology Solutions Corp. (CTSH) $43.70 -12.21%

Charter Communications Inc. (CHTR) $126.23 -9.28%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Kroger Co. (KR) $56.61 -8.43%

Omnicom Group Inc. (OMC) $71.35 -6.50%

Nasdaq Inc (NDAQ) $82.24 -6.01%

L3Harris Technologies Inc. (LHX) $294.82 -5.86%

Northrop Grumman Corp. (NOC) $521.50 -5.21%

International Business Machines Corporation (CDI) (IBM) $249.10 -5.05%

Nasdaq 100 - Risers

Intel Corp. (INTC) $133.99 12.48%

Micron Technology Inc. (MU) $1,133.99 8.79%

Broadcom Inc. (AVGO) $411.35 6.72%

Take-Two Interactive Software Inc. (TTWO) $239.28 5.22%

KLA-Tencor Corp. (KLAC) $259.56 4.93%

Texas Instruments Inc (TXN) $322.86 4.72%

Western Digital Corp. (WDC) $746.23 4.24%

QUALCOMM Inc. (QCOM) $226.11 3.64%

Dollar Tree Inc (DLTR) $111.65 2.83%

Microchip Technology Inc. (MCHP) $99.77 2.56%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Cognizant Technology Solutions Corp. (CTSH) $43.70 -12.21%

Charter Communications Inc. (CHTR) $126.23 -9.28%

Liberty Global plc Series C (LBTYK) $10.79 -6.70%

Liberty Global plc Series A (LBTYA) $11.20 -6.67%

Workday, Inc. (WDAY) $116.93 -5.70%

Kraft Heinz Co. (KHC) $22.82 -4.24%

O'Reilly Automotive Inc. (ORLY) $86.84 -3.97%

Trip.com Group Limited (TCOM) $45.10 -3.92%

Comcast Corp. (CMCSA) $22.43 -3.68%