Semiconductor stocks led the rally in the US stock market - Photo: THX
Following a sell-off fueled by concerns about a potential interest rate hike by the US Federal Reserve (Fed), Wall Street stocks closed higher last night (Vietnam time). The recovery was primarily driven by technology and semiconductor stocks, amid falling oil prices and improved investor sentiment.
At the close of trading, the S&P 500 rose 1.08%, the Nasdaq surged 1.91%, while the Dow Jones edged up 0.14%. Semiconductor stocks became the main driver of the market following news that Intel will partner with Apple in chip design and manufacturing in the US. In addition, easing geopolitical tensions in the Middle East and the gradual restoration of shipping activity through the Strait of Hormuz helped alleviate inflation concerns and supported fuel-sensitive stock groups such as airlines, travel, and transportation.
The US market will be closed for a holiday on June 19th. For the week as a whole, the S&P 500 recorded a 0.93% increase, while the Nasdaq rose 2.43% and the Dow Jones increased 0.71%.
Early in trading, oil prices plunged to their lowest level since early March after the US and Iran signed a temporary agreement. This agreement extended the April ceasefire for another 60 days, giving both sides more time to reach a final deal. Previously, inflation had been a major concern for investors as oil prices had been steadily rising since the conflict erupted in late February.
Although falling oil prices have somewhat eased inflation concerns, investors are anticipating that the Fed will raise interest rates this year, after the new Fed Chairman, Kevin Warsh, emphasized the need to curb inflation, and other policymakers have also signaled that borrowing costs will rise in the near future.
According to CME Group's FedWatch tool, traders are anticipating a 50% chance that the Fed will raise interest rates by 0.25 percentage points as early as September, and a 20% chance of a 0.50 percentage point increase.
Source: https://vtv.vn/co-phieu-cong-nghe-dan-dat-da-phuc-hoi-tai-pho-wall-100260619083154397.htm
