U.S. Stocks Rise on U.S.-Iran Peace Deal; Tech Leads Gains

U.S. stock markets closed higher on Thursday as investors welcomed the signing of a Memorandum of Understanding between the United States and Iran. The Dow Jones Industrial Average rose 0.14 percent to 51,564.7, while the S&P 500 added 1.08 percent to 7,500.58 and the Nasdaq Composite Index increased 1.91 percent to 26,517.93. Technology and consumer discretionary sectors led the gains, rising 2.68 percent and 1.76 percent respectively, while energy and financials declined 1.73 percent and 0.91 percent.

U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed the interim peace agreement memorandum on Wednesday, with the deal taking effect immediately. Key provisions include the reopening of the Strait of Hormuz to commercial shipping and the lifting of the U.S. naval blockade in the region. Negotiations on longer-term issues, including Iran's nuclear program, are expected to continue over the next 60 days.

Oil prices showed mixed reactions to the agreement. West Texas Intermediate crude for July delivery fell 0.19 dollars, or 0.25 percent, to settle at 76.6 dollars per barrel, while Brent crude for August delivery rose 0.30 dollars, or 0.38 percent, to settle at 79.85 dollars per barrel. Financial analysts noted the decline in oil prices may ease recent inflation concerns, though some cautioned that markets may be overly optimistic about the speed of regional reopening.

Markets also reflected Federal Reserve signals that interest rates may remain elevated longer than previously anticipated, with several officials indicating a possible rate hike later in the year. U.S. initial jobless claims for the week ending June 13 fell by 4,000 to 226,000, roughly in line with analyst expectations. In individual stock movements, Intel and other chip stocks rallied, while SpaceX continued to decline, falling 3.56 percent on Thursday after a previous 4.95 percent drop, despite gains from its recent initial public offering.

The U.S. stock market will be closed Friday in observance of Juneteenth National Independence Day.