U.S. stocks rebounded Thursday, led by a sharp rally in semiconductors, as a signed U.S.-Iran peace deal sent oil tumbling and an Intel-Apple chip manufacturing pact boosted technology shares. The rebound followed a slump after the Federal Reserve, in Kevin Warsh's first meeting as chair, held its benchmark rate at 3.50%-3.75% but raised its inflation outlook and signaled a growing bias toward hiking later this year.

Crude extended its slide after the U.S. and Iran signed a 14-point memorandum of understanding to extend the ceasefire and reopen the Strait of Hormuz. West Texas Intermediate crude fell 2.2% to around $75 a barrel, while Brent slipped 1.5% to roughly $78. Oil has now dropped about 14% over five sessions to its lowest level since the conflict began, dragging the national average gasoline price below $4 a gallon for the first time since March.

Market Performance

Gains were concentrated in megacap technology, with the rest of the market mixed. The S&P 500 rose 1.2% to about 7,505, while the Dow Jones Industrial Average added 0.8% to near 51,905. The Nasdaq 100 outperformed, climbing 1.5% to around 30,116 as chipmakers led the charge. The Russell 2000 bucked the trend, falling 0.7% to roughly 2,897 as small caps stayed pressured by the prospect of higher-for-longer interest rates.

Sector Movers

The Technology Select Sector SPDR Fund (NYSE:XLK) led all S&P 500 sectors with a 2.8% gain, followed by the Utilities Select Sector SPDR Fund (NYSE:XLU), up 1.8%. The Energy Select Sector SPDR Fund (NYSE:XLE) was the laggard, falling 2.0% with crude, while the Health Care Select Sector SPDR Fund (NYSE:XLV) slid 1.2%.

The VanEck Semiconductor ETF (NASDAQ:SMH) surged 5.4% to pace all industries. Intel Corp. (NASDAQ:INTC) surged roughly 9.8% after President Donald Trump said on Truth Social that Apple Inc. (NASDAQ:AAPL) had agreed to work with Intel to design and build its chips in America. Peers rallied in sympathy, with Advanced Micro Devices Inc. (NASDAQ:AMD) up 3.9%, Broadcom Inc. (NASDAQ:AVGO) up 3%, and Micron Technology Inc. (NASDAQ:MU) up 4.8%.

Accenture plc (NYSE:ACN) plunged 17.4% after cutting its fiscal-year revenue-growth guidance, citing cautious enterprise spending. The read-through dragged down the digital-consulting cohort, with Cognizant Technology Solutions Corp. (NASDAQ:CTSH) falling 10.4%, Globant S.A. (NYSE:GLOB) dropping 9.9%, EPAM Systems Inc. (NYSE:EPAM) losing 9.8%, and Genpact Ltd. (NYSE:G) sliding 8.7%.

Astera Labs Inc. shares are in focus after Nasdaq announced its quarterly index reconstitution, with ALAB set to join the Nasdaq-100 effective before market open on June 22. The addition requires every ETF and passive fund tracking the Nasdaq-100, including the QQQ which manages over $300 billion in assets, to purchase Astera shares ahead of that date. This structural demand is expected to generate sustained buying pressure in the days leading up to the effective date.

Nasdaq’s quarterly reconstitution will add Astera to the Nasdaq-100 alongside CoreWeave, Nebius Group, Rocket Lab, and Teradyne. Exiting the index are Charter Communications, Cognizant, Insmed, Verisk Analytics, and Zscaler. The changes take effect before market open on June 22.

Business Performance and Guidance

The inclusion follows significant growth for the company, which designs semiconductor-based connectivity solutions for rack-scale AI infrastructure. Revenue and EPS have grown more than 5x since its IPO. The company guided Q2 2026 revenue to $355–$365 million, reflecting 15–18% sequential growth.

The stock has surged 203% over the past three months, driven by strong demand for its Scorpio switches, custom silicon, and optical engines. These components are critical in the AI data center buildout.

Index Changes Overview

At the time of publication, Astera shares are trading 4.09% higher at $382.50.