WASHINGTON (dpa-AFX) - Stocks have moved sharply higher during trading on Thursday, largely offsetting the weakness seen late in the previous session. The major averages have all moved back to the upside, with the tech-heavy Nasdaq leading the rebound.
Currently, the major averages are off their highs of the session but still firmly positive. The Nasdaq is up 364.08 points or 1.4 percent at 26,385.74, the S&P 500 is up 74.86 points or 1 percent at 7,494.96 and the Dow is up 238.95 points or 0.5 percent at 51,731.50.
The rebound on Wall Street may partly reflect a positive reaction to news the U.S. and Iran have officially signed a preliminary agreement to end the Middle East war.
U.S. President Donald Trump and his Iranian counterpart Masoud Pezeshkian have each signed the memorandum of understanding setting up negotiations to reach a permanent peace deal
The MoU will enter into force with immediate effect and as a first step, Iran will reopen the Strait of Hormuz and the United States will lift the naval blockade of Iranian ports.
As per the 14-point framework deal, the U.S. and Iranian teams will begin talks to reach a final deal over the next 60 days.
The news has contributed to a steep drop by the price of crude oil, with crude oil futures pulling back further toward the levels seen before the war began in late February.
'That has huge significance for inflation and interest rates, as well as business, consumer and investor sentiment,' said Russ Mould, investment director at AJ Bell. 'It takes the pressure off industries and households and is hugely positive for global economic growth.'
Intel (INTC) has also helped lead a rally by semiconductor stocks, with the chipmaker soaring by 8.8 percent to a record intraday high.
The surge by Intel comes after Trump said in a post on Truth Social that Apple (AAPL) has agreed to work with the company to design and build its chips in the U.S.
In U.S. economic news, a report released by the Labor Department showed a modest pullback in first-time claims for U.S. unemployment benefits in the week ended June 13th.
The Labor Department said initial jobless claims dipped to 226,000, a decrease of 4,000 from the previous week's revised level of 230,000.
Economists had expected jobless claims to edge down to 225,000 from the 229,000 originally reported for the previous week.
Sector News
With Intel leading the way higher, semiconductor stocks have spiked, driving the Philadelphia Semiconductor Index up by 6.5 percent to a record intraday high.
The steel drop by the price of crude oil has also contributed to substantial strength among airline stocks, with the NYSE Arca Airline Index soaring by 4.8 percent.
Computer hardware and housing stocks are also seeing significant strength, while energy stocks are moving sharply lower along with the price of crude oil.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday. Japan's Nikkei 225 Index surged by 1.7 percent to a record high, while Hong Kong's Hang Seng Index shed 1.6 percent.
The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index is down by 1.1 percent, the French CAC 40 Index and the German DAX Index are both up by 0.4 percent.
In the bond market, treasuries are largely offsetting the weakness seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.3 basis points at 4.430 percent.
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