Financial Markets                      06/18 15:38

   

   NEW YORK (AP) -- 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.

   On Thursday, stocks faced less pressure as bond yields eased and oil prices 
spent most of the day falling.

   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.

   U.S. markets will be closed Friday for Juneteenth.

   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%.

   On the losing end, 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.

   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.

   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%.

   Energy companies lost ground. Exxon Mobil fell 2.1% and Chevron fell 2.2%.

   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.

   "While investors are welcoming the agreement as a constructive step for 
geopolitical risk, uncertainty remains elevated around potential flare-ups, the 
pace of shipping normalization, control of the waterway, the cost of access, 
and the path forward for Iran's nuclear program." said Adam Turnquist, chief 
technical strategist for LPL Financial, in a research note.

   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.

   "This shift in the risk distribution helps explain why around half of the 
committee thought that an interest-rate hike this year might be needed," said 
James McCann, senior economist at Edward Jones, in a research note.

   The Fed's stronger signal for an eventual rate hike prompted a jump in bond 
yields on Wednesday, but they eased on Thursday.

   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.

   Markets were mixed in Europe after closing lower Asia.

   ___

   Senior Producer Mayuko Ono contributed to this report.

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