Chip companies fueled Wall Street’s one-week rise

On Wednesday, Wall Street’s stock indices fell after the US central bank, the Fed, signaled the possibility of an interest rate hike later this year. Stock indices rose, driven by chip companies in particular.

The S&P 500, which broadly tracks large companies, rose 1.1 percent. The technology-focused Nasdaq gained 1.9 percent. The flagship Dow Jones index rose 0.2 percent.

Chip company Intel led the rise of semiconductor companies. Intel stock rose more than 10 percent after the president Donald Trump said the company is collaborating with Apple on chip design in the US.

Other semiconductor companies were also on a strong rise. Nvidia strengthened by 3.0 percent and Micron Technology almost nine percent. The iShares Semiconductor ETF, which tracks semiconductor companies, rose more than six percent.

At its Wednesday rate meeting, the Fed kept the key interest rate unchanged, but the central bank’s interest rate forecast raised concerns about the direction of monetary policy. A so-called dot chart of Fed policymakers showed that nine out of 18 central bankers expect interest rates to rise in 2026.

The uncertainty was increased by the fact that the new head of the Fed Kevin Warsh left his own interest rate forecast unannounced. However, Warsh emphasized the goal of price stability several times at the press conference, which the market interpreted as favoring interest rate hikes.

Wall Street is ending the short stock market week on the rise. The S&P 500 had its 11th week of gains in the past 12 weeks.

Network equipment manufacturer Nokia fell 2.5 percent to $13.49. Nokia’s depository receipt or ADR is listed on the New York Stock Exchange.

The New York Stock Exchange is closed on Friday, as the United States celebrates the Juneteenth holiday, which commemorates the emancipation of enslaved people in 1865.