US stocks climbed on Thursday, with tech stocks pacing gains as investors digested the signing of the interim US-Iran peace deal and the latest Federal Reserve decision on interest rates.
The tech-heavy Nasdaq Composite (^IXIC) surged 1.5%, while the S&P 500 (^GSPC) moved up 1% and the Dow Jones Industrial Average (^DJI) gained 0.7%, coming off sharp closing losses for Wall Street stocks.
President Trump and his Iranian counterpart on Wednesday signed the memo outlining their countries’ peace agreement, a move previously expected for Friday. The deal went into effect on Thursday, potentially speeding up the timeline for reopening the Strait of Hormuz to commercial traffic and lifting sanctions on Iranian oil. Negotiations on more protracted issues, including Tehran’s nuclear program, are expected to take place over the next 60 days.
Brent crude futures (BZ=F) sank as much as 3% after the news, chipping away at most of its war-time gains. But oil prices pared losses somewhat amid the first crossings of the strait, with Brent at around $78 a barrel and West Texas Intermediate (CL=F) just above $74.
Meanwhile, investors eyed the chances that rates will stay higher for longer after more Fed officials signaled a hike is on the table for later this year, after standing pat on policy in their decision on Wednesday.
The central bank’s hawkish tilt comes as inflation has remained elevated and the job market steady amid conflict with Iran. Data from the Labor Department on Thursday showed initial jobless claims were slightly hotter than estimates but cooled over the week prior.
Thursday will be the last day of trading for Wall Street stock markets, which will close on Friday to observe the Juneteenth holiday.
