US sharemarkets rebounded on Thursday, recovering from the previous session’s Federal Reserve-driven sell-off as investors returned to technology and semiconductor stocks. The S&P 500 rose 1.08% to 7,500.58, while the Nasdaq Composite gained 1.91% to 26,517.93. The Dow Jones Industrial Average added 72.15 points, or 0.14%, to close at 51,564.70.
Semiconductor stocks led the advance after President Donald Trump said Intel would partner with Apple on designing chips in the United States. Intel surged 10.6%, while Nvidia gained around 3% and Micron Technology climbed almost 9%.
The iShares Semiconductor ETF rose more than 6%, helping drive broader gains across technology stocks and reinforcing investor confidence in the artificial intelligence theme.
Investor sentiment improved after concerns surrounding the Federal Reserve’s latest meeting eased. Markets had fallen sharply on Wednesday after policymakers signalled the possibility of higher interest rates in 2026 under new Fed Chair Kevin Warsh.
Despite the hawkish outlook, investors focused on strong corporate earnings, resilient economic data and continued investment in AI infrastructure. For the week, the S&P 500 gained 0.9%, marking its 11th positive week in the past 12. The Nasdaq rose 2.4%, while the Dow added 0.7%.
Oil prices fell as shipping activity resumed through the Strait of Hormuz, easing concerns about disruptions to global energy supplies. US West Texas Intermediate crude slipped to around US$75 a barrel, extending recent declines as traders priced in improving conditions across key Middle East shipping routes. Bond markets also stabilised following recent volatility linked to the Federal Reserve’s outlook. Treasury yields eased as investors reassessed the likelihood and timing of future US interest rate increases.
The US dollar strengthened to a one-year high, while Bitcoin moved lower. Markets remain focused on the balance between persistent inflation pressures and signs of resilience in economic activity, including strong employment and retail sales data.
Australian Market Outlook
Australian shares are expected to open lower despite strong gains on Wall Street, with local futures pointing to a softer start following recent market strength. S&P/ASX 200 futures are down 51 points, or 0.6%, to 8,854.
Local technology stocks may find support from the strong rally in US semiconductor names, although broader market sentiment could remain cautious following the Federal Reserve’s hawkish stance. Lower oil prices may provide some relief for inflation expectations, while investors continue to monitor developments in the Middle East and their implications for global growth.
With Wall Street closed on Friday for the Juneteenth public holiday, trading volumes may be lighter and attention will turn to upcoming economic data and central bank commentary for further direction.
