U.S. stocks settled higher on Thursday, with the Nasdaq Composite surging almost 500 points during the session, led by a sharp rally in semiconductors, as a signed U.S.-Iran peace deal sent oil tumbling. The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, though it remained in the "Fear" zone. The S&P 500 rose 0.9% last week, recording its 11th winning week in 12, while the Dow gained 0.7% and the Nasdaq surged 2.4% during the period.

Federal Reserve Policy

The Federal Reserve, on Wednesday, unanimously held the federal funds rate steady at 3.50%-3.75%, as widely expected, in the first policy meeting under new Fed Chair Kevin Warsh. The Fed’s closely watched dot plot showed that several officials now expect interest rates to rise in 2026. The Fed penciled in higher inflation, a lower unemployment rate and one hike this year, marking a hawkish shift from the March dot plot, which had signaled one additional rate cut.

Market Movers

Intel Corp surged more than 10% on Thursday after President Donald Trump said on Truth Social that Apple Inc had agreed to work with Intel to design and build its chips in America. Most sectors on the S&P 500 closed on a negative note, with energy, financial and health care stocks recording the biggest losses. However, consumer discretionary and information technology stocks closed the session higher.

Economic Data

U.S. initial jobless claims fell by 4,000 to 226,000 in the second week of June, compared to market estimates of 225,000. The Philadelphia Fed manufacturing index rose to 10.3 in June from -0.4 in the previous month, compared to market estimates of 10.

Market Sentiment

At a current reading of 37.3, the Fear & Greed Index remained in the "Fear" zone on Thursday, versus a prior reading of 32.2. The index is a measure of the current market sentiment, calculated based on seven equal-weighted indicators ranging from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

The Nasdaq Composite has reached a record closing high, surpassing its previous record set on May 14. This milestone marks a notable development for the widely tracked index, reflecting sustained buying interest among market participants.

Record Closing High

The Nasdaq Composite's latest closing level represents a new all-time high, overtaking the benchmark it had previously established on May 14. The achievement highlights the index's upward trajectory over the recent period.

The breach of the prior record closing level is a key milestone for the Nasdaq Composite, which tracks a broad range of companies listed on the Nasdaq stock exchange. Setting a new closing high reflects the cumulative performance of its constituent stocks over the relevant period.