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Stocks rose on Wall Street Thursday and erased most of their losses from a day earlier to notch weekly gains. The market's reversal was powered by sharp gains for big technology companies. The decline on Wednesday was driven by anticipation that the Federal Reserve will likely raise interest rates this year in an effort to fight inflation. The S&P 500 rose 80.48 points, or 1.1%, to 7,500.58. The Dow Jones Industrial Average rose 72.15 points, or 0.1%, to 51,564.70. The Nasdaq composite surged 496.28 points, or 1.9%, to 26,517.93. Every major index notched weekly gains. Oil prices wavered after the United States and Iran signed an agreement to end their war and reopen the Strait of Hormuz to oil tanker traffic. Brent crude, the international standard, spent most of the day lower before settling 0.4% higher at $79.85 per barrel. U.S. benchmark crude fell 0.2% to $75.85 per barrel. Prices for crude oil are still above roughly $70 per barrel from before the war but are well below the $100-plus price from a few weeks ago. Higher oil prices have been weighing on markets throughout the U.S. war with Iran. The current deal between the nations waives sanctions against Iran and allows it to sell its oil freely. It also opens up the Strait of Hormuz where a fifth of the world's oil supply is shipped. Rising energy costs have been putting more pressure on already hot inflation. The average price of gasoline in the U.S. has dipped below $4 a gallon, but is still 25% higher from a year ago. Prices have been rising for a wide range of goods because of higher shipping costs. Hotter inflation prompted the Federal Reserve to shift course from cutting its benchmark interest rate to likely raising rates by the end of the year. Lower interest rates can boost the economy by making borrowing easier for businesses and households but it also tends to stoke inflation. The Fed has been trying to balance its job of curbing inflation while supporting employment growth. The jobs market has remained relatively strong amid rising inflation, with low unemployment and solid job growth. The central bank closed its two-day meeting on Wednesday by maintaining its benchmark interest rate at its current level. But it signaled that it might raise the rate at least once by December. The Fed's stronger signal for an eventual rate hike prompted a jump in bond yields on Wednesday, but they eased on Thursday. Technology stocks had some of the biggest gains and the most influence on the broader market's rise. Intel surged 10.6% after President Donald Trump announced that the semiconductor giant will make chips for Apple in the U.S. Other big semiconductor companies gained ground. Nvidia rose 3% and Micron Technology jumped 8.7%. Airlines had some of the bigger gains. American Airlines rose 3.7% and United Airlines rose 2.1%. Cruise line company Carnival jumped 3.2%. SpaceX fell for the second straight day since its ballyhooed debut on the U.S. stock market last week. The Elon Musk-led rocket maker and AI company was down 3.6% following a 4.9% loss Wednesday. Energy companies lost ground. Exxon Mobil fell 2.1% and Chevron fell 2.2%. Asia-Pacific markets traded mixed, with Japan's Nikkei 225 jumping to a fresh record, advancing 1.95% to rise past the 72,000 mark, while the Topix rose 1.29%. South Korea's Kospi rose 1.22% while the small-cap Kosdaq slipped 0.99%. Australia's benchmark S&P/ASX 200 was marginally higher. Hong Kong's Hang Seng index fell 1.74%, while the mainland CSI 300 was up 0.28%. The yield on the 10-year Treasury fell to 4.45% from 4.49% late Wednesday. The yield on 2-year Treasury which more closely tracks action by the Fed, fell to 4.18% from 4.20% late Wednesday. Powered by Capital Market - Live News
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