Dow, S&P 500, Nasdaq rise as Iran deal eases Fed policy concerns

US equity markets opened higher Thursday, June 18, extending a rebound as investors weighed easing geopolitical tensions alongside a more cautious Federal Reserve stance on interest rates.

The tech-heavy Nasdaq Composite climbed 1.5%, leading gains among major US benchmarks, while the S&P 500 advanced 1% and the Dow Jones Industrial Average rose 0.6%. The move marked a rebound from the previous session’s sharp losses across Wall Street.

The advance was supported by progress on the interim US–Iran peace agreement, signed earlier than expected and now in effect.

The deal raises prospects of improved maritime flow through the Strait of Hormuz and a gradual easing of sanctions on Iranian crude exports, though broader negotiations on Iran’s nuclear program remain ongoing over the next 60 days.

The development pressured energy markets, with Brent crude briefly sliding before stabilising around the upper-$70s per barrel range.

On the monetary policy front, investors continued to digest a more hawkish tone from the Federal Reserve following its latest meeting. Policymakers signaled that interest rates may remain elevated for longer, with some officials leaving the door open to a potential hike later this year. The updated projections, including a divided “dot plot,” reinforced expectations that inflation control remains the central policy priority, even at the expense of growth momentum.

Technology shares outperformed, with semiconductor stocks driving much of the upside. Intel surged after reports of a strategic collaboration with Apple on US-based chip design initiatives. Broader chip sentiment strengthened, lifting Nvidia and Micron Technology, while the iShares Semiconductor ETF (SOXX) posted strong gains on sector-wide momentum.

Overall, markets are balancing geopolitical de-escalation optimism with a still-restrictive policy outlook, keeping volatility contained even as sector leadership remains firmly in large-cap technology.