US stock markets are closed today (Friday, June 19) for the Juneteenth federal holiday. But the last trading session before the break gave investors plenty to digest.
Thursday was a strong risk-on session. The Nasdaq Composite surged 1.9% — a sharp reversal from Wednesday's selloff — while the S&P 500 gained about 1.1% to trade around the 7,500 level. The Dow Jones Industrial Average posted a more modest 0.5% gain. Major averages closed out their second consecutive winning week.
Intel Soars on Apple Chip Manufacturing Deal
The standout performer was Intel (INTC), which surged more than 10% after President Donald Trump posted on Truth Social that "Apple has agreed to work with Intel to design and build its chips in America."
The announcement validates Intel's foundry turnaround ambitions. The Wall Street Journal had reported a preliminary agreement between Apple and Intel back in May, but Trump's public confirmation gave the stock a massive boost. For Apple, the deal diversifies its manufacturing away from near-total reliance on TSMC in Taiwan — a strategic shift that aligns with the administration's push to reshore semiconductor production.
The broader semiconductor sector rallied alongside Intel. Nvidia (NVDA) gained 2.95%, closing at $210.69, and the Philadelphia Semiconductor Index posted strong gains.
Warsh's First Fed Meeting: Hold Steady, Hawkish Tilt
The Federal Reserve held its first meeting under new Chair Kevin Warsh on Tuesday-Wednesday, keeping rates unchanged at 3.50%-3.75% in a unanimous 12-0 vote. But the updated dot plot revealed a harder line.
The median end-2026 rate projection rose to 3.8% — up from 3.4% in March — signaling at least one rate hike by year-end. Nine of 18 participants see rates higher than current levels. Warsh shortened the post-meeting statement and dropped forward guidance language, reflecting his preference for less prescriptive communication.
US-Iran Interim Deal Reshapes Oil and Risk Picture
On Wednesday, the US and Iran signed a 14-point memorandum of understanding in Geneva. The framework includes reopening the Strait of Hormuz (which handles about 20% of global oil traffic), a ceasefire on all fronts, sanctions relief allowing Iranian oil exports, and a commitment to negotiate a final deal within 60 days.
Oil prices fell sharply on the news, easing one of the key inflation pressures that had been pushing the Fed toward a hawkish stance.
Micron Earnings Loom Next Week
Despite the holiday, attention is already turning to next week. Micron Technology (MU) reports fiscal Q3 results on June 24, with record expectations: revenue guidance of $33.5 billion, gross margin of 81%, and EPS of $18.90-$19.30. The numbers reflect surging demand for HBM (high-bandwidth memory) tied to AI infrastructure buildout.
The Bottom Line
The week ended on a positive note, driven by tech and semiconductors, but the Fed's hawkish dot plot hangs over the outlook. Geopolitical shifts — from the US-Iran deal to the Intel-Apple partnership — changed the risk map meaningfully. Thursday was a reminder that markets can bounce back quickly. The question is how long the momentum lasts.
Markets remain closed today for Juneteenth. Trading resumes Monday, June 22.
