Nasdaq Jumps 1.9% as Chip Rally Lifts Wall Street

The three major U.S. stock indexes closed higher on June 18, led by a rebound in artificial intelligence and semiconductor shares.

The Dow Jones Industrial Average rose 72.15 points, or 0.14%, to 51,564.70 on the New York Stock Exchange. The S&P 500 gained 80.48 points, or 1.08%, to 7,500.58, while the tech-heavy Nasdaq Composite climbed 496.28 points, or 1.91%, to 26,517.93.

The Dow, which is weighted toward traditional industries and blue-chip stocks, posted only a modest gain. The Philadelphia Semiconductor Index, by contrast, surged more than 6%. All 30 components advanced, with Intel jumping more than 10% after President Donald Trump said Apple and Intel had agreed to design and manufacture chips in the U.S.

The Intel news lifted sentiment across the chip sector. Micron Technology rose 8.7%, while Broadcom and AMD each gained more than 4%. TSMC climbed 7%.

Robert Conzo, chief executive officer of Wells Alliance, said optimism over corporate partnerships is building because of AI infrastructure and AI's impact on a wide range of competitive industries. The Apple-Intel tie-up was one sign of what may lie ahead, he added.

The rally spread through the broader technology sector. Among technology companies with market capitalizations above $1 trillion, only SpaceX declined, falling 3%. Nvidia and Amazon each rose nearly 3%, while Alphabet, Tesla and Meta gained more than 1%.

By sector, technology jumped 2.68%. Communication services and consumer discretionary also rose more than 1%. Energy fell 1.73%.

CME Group's FedWatch tool showed the federal funds futures market pricing in a roughly 36.1% chance of a 0.25 percentage-point rate increase by the end of December. The probability of a 0.5 percentage-point increase held in the 34% range, while the odds of no change stood at 13.8%.

The Cboe Volatility Index, or VIX, fell 2.04 points, or 11.06%, to 16.40.

Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com