US equities moved higher on Thursday, with technology shares setting the pace after a mix of geopolitical easing and shifting interest rate expectations fed through markets, while traders also looked ahead to the final session before the Juneteenth holiday closure.
The Nasdaq Composite climbed close to 2%, the strongest performer among the major benchmarks, while the S&P 500 advanced 1.1% and the Dow Jones Industrial Average lagged with a modest gain of around 0.3%, extending a rebound from the previous session’s losses linked to monetary policy signals.
Sentiment was supported by the formal signing of a US-Iran peace framework on Wednesday, with President Trump and Iran’s leadership agreeing a memorandum that brought the Strait of Hormuz back into commercial use and saw the US remove its naval blockade, while wider negotiations covering longer-term issues including Iran’s nuclear programme are set to continue over the next 60 days, easing immediate energy market concerns
Oil prices have continued to give back recent conflict-driven gains, with Brent crude hovering near $79 a barrel and West Texas Intermediate holding above $75 as increased shipping through the strait helped stabilise supply expectations.
At the same time, attention remained fixed on the Federal Reserve after officials signalled a more restrictive outlook following Wednesday’s decision to leave rates unchanged, with nearly half of the Federal Open Market Committee’s projections indicating a possible rate increase in 2026, reinforcing expectations that borrowing costs may stay elevated for longer as inflation remains persistent and labour market data continues to show resilience.
Currency markets responded to the shift in rate expectations, with the US dollar extending its recent rally and gaining around 0.5% against a basket of peers including the euro, pound and yen, as higher-for-longer interest rate assumptions continued to support demand for dollar-denominated assets.
Individual stock moves remained pronounced, with SpaceX extending its decline for a second day and falling as much as 10% during the session before trimming losses, adding to volatility following its earlier pullback after the Federal Reserve decision.
In the artificial intelligence sector, Anthropic held talks with members of the Trump administration this week as it seeks clarity on export restrictions affecting its Fable 5 and Mythos 5 models, which were recently placed under controls limiting access even for employees and foreign nationals, a development that could complicate the firm’s preparations for a planned initial public offering later this year.
With trading set to pause on Friday for the US holiday, Thursday’s session marked a compressed end to the week, leaving markets to digest a combination of geopolitical de-escalation and a firmer interest rate outlook driving flows across equities, currencies and commodities alike.
