Financial Markets                      06/18 09:37

   

   NEW YORK (AP) -- Stocks rose on Wall Street Thursday, taking back much of 
their losses from a day earlier, and are on track to notch weekly gains.

   The S&P 500 rose 0.8%. The Dow Jones Industrial Average rose 242 points, or 
0.5%, as of 10:01 a.m. Eastern. The Nasdaq composite rose 0.8%. Every major 
index is on track for weekly gains. U.S. markets will be closed Friday for 
Juneteenth.

   The gains are helping to erase much of the losses from a day earlier that 
were driven by anticipation that the Federal Reserve will likely raise interest 
rates this year in an effort to fight inflation. Bond yields are pulling back. 
That, along with falling oil prices, is relieving much of the pressure on 
stocks.

   The gains were broad and being led by technology stocks. Intel surged 7.4% 
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 1.5% and Micron Technology surged 6.1%.

   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 6.5% following a 4.9% loss Wednesday.

   Crude oil prices continued to fall 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, fell 3.1% to $77.11 per 
barrel. U.S. benchmark crude fell 3.7% to $73.15 per barrel.

   Prices are still above roughly $70 from before the war, but are well below 
the $100-plus price from a few weeks ago.

   Higher oil prices had 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.

   Rising energy costs have also 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. 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 will 
likely raise the rate at least once by December.

   That prompted a jump in bond yields on Wednesday, but they eased on Thursday.

   The yield on the 10-year Treasury fell to 4.44% from 4.49% late Wednesday. 
The yield on 2-year Treasury, which more closely tracks action by the Fed, fell 
to 4.16% from 4.20% late Wednesday.

   Markets were mixed in Europe and Asia.

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   Senior Producer Mayuko Ono contributed to this report.

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