U.S. stocks edged higher on Thursday as investors welcomed the formal signing of an interim U.S.-Iran peace agreement and digested a Federal Reserve meeting that kept interest rates unchanged while leaving the door open to additional tightening later this year. Falling oil prices and renewed strength in semiconductor stocks helped fuel a broad-based rally across Wall Street.
The tech-heavy Nasdaq Composite led the advance with a gain of roughly 1.7%, while the S&P 500 climbed about 1.2% and the Dow Jones Industrial Average added 0.5%. The rebound came after a volatile week dominated by inflation concerns and geopolitical uncertainty, with investors shifting their focus toward improving risk sentiment and the long-term outlook for artificial intelligence spending.
Market Movers:
- Smith & Wesson Brands (SWBI) +20%: Shares surged after the firearms manufacturer delivered stronger-than-expected quarterly results, with net sales climbing nearly 27% year over year and adjusted EPS jumping almost 77%. Management also announced plans to increase capital investments at its Springfield facility during fiscal 2027, signaling confidence in future demand.
- Intel (INTC) +7%: The chipmaker rallied after President Donald Trump announced that Apple will partner with Intel to develop and manufacture processors in the United States. The reported agreement would represent a significant manufacturing win for Intel as it continues expanding its foundry business and competing for advanced semiconductor production contracts.
- Spero Therapeutics (SPRO) +5%: Shares gained after the FDA approved Utebzi, an oral treatment for complicated urinary tract infections developed with GSK. The approval marks the first oral carbapenem therapy for the condition and gives the company access to an important new commercial opportunity.
- D-Wave Quantum (QBTS) +3%: The quantum computing company moved higher after unveiling a new gate-model simulator designed for error-aware programming and application development. The technology is intended to help researchers and developers better understand quantum behavior while advancing the company's broader fault-tolerant computing strategy.
- Legend Biotech (LEGN) -13%: Shares fell after the company priced a public offering of 7.7 million American Depositary Shares, raising approximately $226 million. Investors weighed the benefits of additional capital against the potential for shareholder dilution.
- Accenture (ACN) -13%: The consulting giant dropped despite posting an earnings beat after revenue and bookings fell short of expectations and management issued a softer-than-expected outlook. Investors also looked past the company's expanding AI and cybersecurity initiatives, focusing instead on slowing growth.
- Kroger (KR) -7%: Shares declined after the grocery chain reported mixed quarterly results, with pressure on margins offsetting modest sales growth. Higher transportation costs and planned price investments weighed on profitability, while guidance largely matched Wall Street expectations.
- Steel Dynamics (STLD) -6%: The steel producer slipped after issuing second-quarter earnings guidance below analyst forecasts. Management cited asset writedowns tied to relocating a planned aluminum recycling facility as a key factor impacting results.
Fed Keeps Rates Steady but Maintains a Hawkish Tone
As expected, the Federal Reserve left interest rates unchanged, but policymakers signaled that additional rate hikes remain a possibility if inflation stays elevated. The updated projections showed a growing number of officials anticipating tighter monetary policy through next year, reinforcing expectations that borrowing costs could remain higher for longer. The Fed's stance reflects an economy that continues to show resilience despite persistent inflation pressures. Stable employment data and ongoing consumer spending have given policymakers room to prioritize price stability while monitoring the effects of recent geopolitical developments.
Iran Peace Deal Sends Oil Prices Lower
Markets also reacted positively after the United States and Iran formally signed an interim peace agreement, accelerating expectations that commercial traffic through the Strait of Hormuz could normalize sooner than anticipated. The agreement also lays the groundwork for discussions on broader issues, including sanctions and Iran's nuclear program over the coming months.
The news pushed Brent crude sharply lower before prices recovered modestly, easing concerns that energy costs would continue driving inflation higher. Lower oil prices provided additional support for equities, particularly technology and growth stocks that had struggled during the recent spike in commodity prices.
Semiconductor Rally Regains Momentum
Chip stocks returned to leadership after reports that Apple will work with Intel on domestic processor manufacturing added fresh optimism to the sector. The announcement comes as demand for AI infrastructure continues to outpace supply, reinforcing expectations that investment in advanced semiconductor production will remain robust. The Philadelphia Semiconductor Index climbed to fresh record highs as investors rotated back into AI-related names following several sessions of volatility. Strong demand for computing power and ongoing government support for domestic chip manufacturing continue to provide a favorable backdrop for the industry.
Looking Ahead
With the Fed decision now behind them, investors will turn their attention to the implementation of the U.S.-Iran agreement and whether lower oil prices begin easing inflation concerns. Markets will also continue monitoring AI investment trends and semiconductor demand, while next week's economic data and corporate developments could determine whether the latest rally has enough momentum to carry major indexes to fresh highs.