Stocks Rebound to End the Week as Semiconductors Lead the Charge

Stocks closed out a volatile week on a positive note, rebounding from Wednesday’s FOMC-driven selloff as semiconductor leadership, resilient mega-cap technology stocks, and easing geopolitical concerns helped restore investor confidence. The S&P 500 gained 1.1%, the Nasdaq Composite advanced 1.9%, and the Dow Jones Industrial Average added 0.1%, allowing all three major indices to finish the week in positive territory.

Technology once again led the market higher, with the information technology sector surging 2.7% to finish as the strongest-performing sector of the day. Semiconductor stocks were at the center of the rally, continuing to attract buyers despite recent volatility.

Intel jumped 10.6% after President Trump confirmed that the company will partner with Apple to design and manufacture Apple chips in the United States. Meanwhile, Micron gained 8.7% following a series of analyst price-target increases that fueled renewed enthusiasm across the memory segment. The Philadelphia Semiconductor Index climbed 6.4%, extending its remarkable advance and pushing its year-to-date gain above 100%.

Not all technology stocks participated in the rally. Accenture fell 16.3% after issuing disappointing forward guidance alongside its earnings report, making it the worst-performing S&P 500 component. The weakness spilled over into other IT services companies, including Cognizant Technology Solutions and IBM.

Beyond semiconductors, mega-cap growth stocks also staged a strong recovery from previous losses. Amazon rose 2.9% after reports indicated the company is exploring sales of its Trainium AI chips to external data-center operators, potentially expanding its challenge to NVIDIA’s dominance in AI infrastructure. Alphabet and Meta Platforms also rebounded after suffering steep declines in the previous session.

The renewed strength in large-cap growth stocks helped lift the communication services sector by 1.1% and the consumer discretionary sector by 1.8%, both of which had been among Wednesday’s weakest performers. The Vanguard Mega Cap Growth ETF gained 1.8%.

Geopolitical developments also provided support. President Trump signed a 60-day memorandum of understanding aimed at ending the conflict with Iran, reopening the Strait of Hormuz, and reducing risks to global energy supplies. Crude oil prices initially moved sharply lower on the news before recovering most of those losses later in the day. Even so, oil ended the week only modestly above levels seen prior to the start of the U.S. military campaign against Iran.

The prospect of lower energy costs and reduced geopolitical risk supported a broad range of oil- and rate-sensitive stocks. Carvana and DoorDash led gains within the consumer discretionary sector, while homebuilders such as PulteGroup and Lennar posted strong advances. The iShares U.S. Home Construction ETF climbed 3.6%.

Industrials gained 0.7%, aided by strength in construction-related companies and electrical equipment manufacturers that continue to benefit from AI infrastructure spending trends. Utilities also added 0.7%, benefiting from their interest-rate sensitivity.

Defensive sectors were mixed. Health care declined 0.9%, while consumer staples fell 0.6%. Kroger weighed on the group after reporting a slight earnings miss and issuing underwhelming guidance.

The energy sector was the weakest performer, falling 1.7% as investors responded to the easing geopolitical backdrop and the reduced threat to global oil supplies. Financials slipped 0.9%, while materials lost 0.4%.

Smaller-cap stocks participated in the rally as well. The Russell 2000 surged 2.1%, benefiting from the improved macro backdrop, while the S&P MidCap 400 gained 1.1%.

Overall, Thursday’s session marked a convincing rebound from the previous day’s Fed-related weakness. Investors appeared willing to look beyond the Federal Reserve’s more hawkish outlook and continue allocating capital toward areas of persistent strength, particularly semiconductors and AI-related technology stocks. At the same time, easing tensions in the Middle East and relatively stable oil prices helped broaden participation across the market, supporting a constructive finish to the week.

Our FTinvest 11 model portfolio gained 0.50% to close at 964.50, posting its first advance in three sessions and recovering a small portion of the recent decline. While the portfolio remains in correction territory, approximately 10.6% below its all-time high of 1,078.93, today’s gain suggests some stabilization after a period of intense selling pressure.

FTinvest 11 remains up approximately +3.91% year-to-date. Recent performance has continued to be heavily influenced by one portfolio component experiencing liquidity-related challenges, which has weighed disproportionately on the overall index. Despite these headwinds, the portfolio maintains a positive return for 2026, and its disciplined, value-driven investment strategy remains focused on long-term fundamentals rather than short-term market fluctuations.

As a reminder, U.S. markets will be closed tomorrow in observance of the Juneteenth holiday.