US Stock Market Rises as Chip Stocks Surge, Semiconductor Index Hits Record High

Deep News05:52

US stock markets advanced on Thursday, with semiconductor shares extending their gains from the previous session, driving the Philadelphia Semiconductor Index up 6.4% to a record high.

The S&P 500 index rose 1.1%, while the technology-heavy Nasdaq 100 Index climbed 2.5%.

Chip companies Micron Technology and Broadcom were among the top performers within the S&P 500.

Intel also gained ground after former US President Donald Trump earlier stated the chipmaker had reached a chip agreement with Apple.

Apple shares edged higher after its CEO Tim Cook indicated plans to raise product prices to offset increases in memory and storage chip costs.

Trading volume was above average and saw a noticeable increase in late trading ahead of the Juneteenth holiday long weekend.

Thursday also marked the largest single-day options expiration in US history, with Citadel Securities data showing $8.3 trillion in notional exposure expiring.

West Texas Intermediate crude oil was largely flat around $77 per barrel after Trump signed a temporary US-Iran agreement and tankers began transiting the Strait of Hormuz.

Traders increased bets on interest rate hikes after Federal Reserve Chair Kevin Warsh, in his first press conference since taking office, clearly stated he would not tolerate high inflation.

SpaceX shares fell 3.6%, extending losses from the prior session, as Wall Street investment banks were reportedly preparing for a potential bond issuance by SpaceX of at least $200 billion.

Amazon shares rose 2.9% on news the company is in talks to sell its custom artificial intelligence chips to other companies' data centers.

At the close, the S&P 500 was up 1.1% at 7,500.58 points.

The Dow Jones Industrial Average gained 0.1% to 51,564.7 points.

The Nasdaq Composite Index advanced 1.9% to 26,517.93 points.

The Nasdaq 100 Index increased 2.5% to 30,406.19 points.

The Russell 2000 Index rose 2.1% to 2,979.765 points.

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