Key facts
- Wall Street indexes were set for a higher open, led by tech stocks, as optimism over a Middle East peace deal countered concerns about a hawkish Federal Reserve.
- Intel shares surged 8.8% premarket on news that Apple will collaborate on chip design and manufacturing in the U.S.
- Oil prices fell to a three-month low following an interim agreement between the U.S. and Iran.
- Markets are pricing in a 50% chance of a 25-basis-point Fed rate hike in September.
- Accenture shares fell 16% after the company lowered its annual revenue forecast and announced significant acquisitions.
- Kroger shares dropped 7.8% after reporting a lower-than-expected quarterly profit.
Wall Street's major indexes were poised for a higher open on Thursday, with technology shares leading gains, as optimism surrounding a Middle East peace deal offset worries about a hawkish Federal Reserve under new Chair Kevin Warsh. Intel's shares rose significantly in premarket trading after U.S. President Donald Trump announced Apple had agreed to work with the company to design and manufacture its chips in the United States.
Other chip stocks also moved higher, with Nvidia, Micron, and Marvell Technology adding to gains. The broader market had previously slumped as investors priced in the likelihood of more Federal Reserve rate hikes, following hawkish signals from Warsh and other policymakers. However, the U.S.-Iran deal signing is seen as a significant positive that could help bring down inflation over the long term, with oil prices sliding to a more than three-month low.
Markets are currently pricing in a 50% chance of a 25-basis-point rate hike in September, according to CME Group's FedWatch tool. The United States and Iran released the text of an interim agreement to end the war, extending the April ceasefire by another 60 days. Dow E-minis, S&P 500 E-minis, and Nasdaq 100 E-minis all indicated a higher open. Markets have regained ground from an early June slump, supported by a resilient economy, a broadening rally beyond tech shares, and optimism surrounding the U.S.-Iran deal.
Weekly jobless claims data showed a decrease in Americans filing for unemployment benefits, with layoffs remaining low. The Nasdaq and the blue-chip Dow were on track to end higher for a second consecutive week before Friday's Juneteenth holiday. Thursday also marks the quarterly 'triple witching' event, which can boost trading volume and volatility. Among other movers, Rumble jumped significantly after rebranding and closing an acquisition, while Kroger dropped after reporting lower-than-expected profit. Accenture shares tumbled after trimming its annual revenue forecast and announcing plans to acquire several companies.