Nasdaq Climbs 217 Points as Intel-Apple Chip Deal and Iran Peace Accord Revive Tech Rally

The Nasdaq Composite surged Thursday, recovering sharply from the prior session's Fed-driven selloff as a sweeping combination of geopolitical relief, a landmark domestic semiconductor deal, and renewed confidence in technology stocks pushed the index back toward recent highs — capping the final full trading day before markets close Friday for the Juneteenth federal holiday.

The tech-heavy index closed at 26,238.75, a gain of 217.09 points, or 0.83%, clawing back a meaningful portion of Wednesday's steep losses. The S&P 500 and Nasdaq Composite climbed 0.8% each, while the Dow Jones Industrial Average rose by 271 points, or 0.5%. The Russell 2000, which tracks smaller companies, continued to lag, losing ground on the day and underscoring the extent to which Thursday's recovery was concentrated in the large-cap technology names that dominate the Nasdaq.

Intel and Apple: A Deal That Moved Markets

The single most consequential catalyst driving Thursday's gains was a morning announcement from President Donald Trump, who declared on Truth Social that Intel had reached an agreement with Apple to design and build semiconductors in the United States — a development that electrified the chip sector and injected fresh momentum into the broader tech rally.

Intel surged 9% in the premarket after President Donald Trump said the company will partner with Apple on designing chips in the U.S. The gains carried into the regular session, making Intel the leading name among chip stocks on the day. Fellow semiconductor names such as Nvidia and Micron Technology were also higher by more than 1% and more than 5%, respectively. The iShares Semiconductor ETF jumped more than 4%.

"Stupid Presidents took our Economy for granted, and let Taiwan and others steal our Semiconductor Factories," Trump said in a post on Truth Social. "Apple has agreed to work with Intel to design and build its Chips in America."

The announcement landed on a market primed for positive news after Wednesday's bruising session. Intel's stock has surged 464% in the past 12 months, with the company hitting a market cap of $608.7 billion, a remarkable reversal for a company that spent years ceding ground to rivals. The Intel-Apple partnership represents a potentially transformative realignment of the domestic semiconductor supply chain — one with implications that reach well beyond the two companies involved.

Iran Peace Deal Seals the Recovery

Adding significant fuel to the Thursday rebound was the formal signing of a U.S.-Iran interim peace agreement — a development that investors had been tracking for more than a week as a potential turning point for global oil markets and, by extension, inflation expectations.

President Trump signed a copy of the U.S.-Iran agreement at the Palace of Versailles in France, according to CNN. "It's signed," Trump told reporters after a dinner hosted by French President Emmanuel Macron.

The U.S. and Iran signed a 14-point memorandum of understanding to extend the ceasefire, including in Lebanon, and reopen the strategically vital Strait of Hormuz. The agreement calls for both sides to continue talks toward a final deal over the next 60 days and includes a $300 billion reconstruction plan for Iran, as well as the removal of all types of U.S. sanctions against the Islamic Republic.

The reopening of the Strait of Hormuz — through which a large share of the world's seaborne oil passes — pushed crude prices lower and eased the inflationary pressure that had been a persistent headwind for tech and growth stocks throughout the spring. Falling oil prices pushed shares of cruise operators higher, with Carnival, Royal Caribbean, and Norwegian Cruise Line all advancing roughly 2%.

Trump, who has faced criticism over the terms of the deal, pushed back sharply on Thursday. "These fools, who think I haven't been tough enough on Iran, when the stock market just hit a record high and oil prices are 'tumbling' down, are either jealous, bad people, or stupid," Trump said on Truth Social.

Wednesday's Fed Shock Still in the Rearview

Thursday's gains came just one session after the Federal Reserve's hawkish update shocked financial markets. The S&P 500 shed 1.21% on Wednesday, with losses steepening during and after Kevin Warsh's inaugural press conference as chairman of the Federal Reserve. That marked the worst performance for the index on the first "Fed day" under a new chair since 1994, according to data from Bespoke Investment Group.

Policymakers' "dot plot" revealed that nine out of 18 Fed officials now see interest rates increasing in 2026, a dramatic shift from the rate-cut expectations that had prevailed just months earlier. The new median projection for the federal funds rate at year-end now stands higher than it did in March, signaling that the committee views at least one additional rate hike as potentially necessary to tame inflation.

Warsh, who took over the Fed's top role last month after being nominated by President Trump, added to the uncertainty by abstaining from submitting his own projection — a move that complicated the market's ability to read the central bank's direction. "The wind has changed a lot in terms of the inflation picture," said Claudia Sahm, chief economist at New Century Advisors, describing the market's reaction to the dot plot.

Notable Movers: Accenture Slumps, SpaceX Steadies

Not every name on the Nasdaq participated in Thursday's recovery. Accenture tumbled 13.4% after it agreed to acquire asset intelligence company runZero and device and software supply chain security company Netrise, as well as a majority stake in cybersecurity company Dragos. The combined deal is valued at approximately $4.175 billion. The sharp selloff reflected investor skepticism about the timing and scale of the acquisitions.

SpaceX, which has been one of the most closely watched names on the Nasdaq since its historic debut on June 12, continued to attract attention. SpaceX went public on June 12, 2026, in the largest IPO in Nasdaq history. "It's clear that SpaceX is not just a rocket company anymore, but an AI player, putting it in direct competition with Anthropic and OpenAI," said Lukman Otunuga, head of market research at FXTM. "This makes SpaceX's performance more critical for future listings this year."

Separately, Sleep Number Corporation confirmed it will be delisted from Nasdaq next week after filing for Chapter 11 bankruptcy protection, a reminder that beneath the headline rally, individual company risk remains a live factor across the index.

A Short Week Ends on Stronger Footing

With markets set to close Friday for Juneteenth, Thursday's session marked the effective end of what has been one of the most turbulent and eventful trading weeks of 2026. In the span of five sessions, investors navigated the largest IPO in Nasdaq history, a hawkish Fed pivot, a formal Middle East peace deal, and a headline-driven semiconductor rally — all against a backdrop of elevated inflation and growing rate-hike expectations.

UBS highlighted that geopolitical developments such as the U.S.-Iran agreement could diversify market drivers beyond tech and AI — potentially broadening a rally that has so far remained heavily concentrated in a small group of AI-adjacent semiconductor and software names. Whether that broadening materializes in the weeks ahead will be among the key questions as investors return from the holiday weekend.