Stocks Rebound as Chips Rally and the Iran Deal Is Signed, While Gold Slides and the Dollar Holds Firm
A day after the Federal Reserve's hawkish hold knocked markets lower, Wall Street bounced back. A rally in chip stocks, a cooling oil price and the formal signing of the US-Iran peace deal lifted risk appetite, sending the Nasdaq 100 up nearly 2.5%. But the split underneath was telling: the dollar held a two-month high and gold kept sliding, a reminder that the Fed's higher-for-longer message has not gone away.
Market snapshot
| Instrument | Level | Move |
|---|---|---|
| Indices (Jun 18 close) | ||
| S&P 500 | 7,508 | +1.08% (+80 pts) |
| Dow Jones | 51,633 | +0.14% (+72 pts) |
| Nasdaq 100 | 30,433 | +2.48% (+735 pts) |
| Metals, forex & energy | ||
| Gold (XAU/USD) | ≈ $4,210 | −1.13% |
| Silver (XAG/USD) | ≈ $65.6 | −3.8% |
| EUR/USD | 1.1460 | −0.36% · dollar firm |
| Brent Crude | $79.34 | −0.27% · steady |
Index levels reference the US500, US30 and US100 cash benchmarks at the June 18 close; metals, oil and FX verified on live price pages. Silver is a spot figure. Other major FX pairs are omitted where a dated quote could not be confirmed. Always check live prices with your broker.
Stocks shrug off the Fed
Twenty-four hours after the hawkish Fed decision sent everything lower, equities found their feet. The Nasdaq 100 jumped 2.48% led by semiconductors, the S&P 500 rose 1.08% and the Dow edged up 0.14%. Two things helped. Oil kept cooling, easing one inflation worry, and the US-Iran peace deal was formally signed, confirming the end of the conflict and the reopening of the Strait of Hormuz. With the war premium gone and chips bid, investors were happy to buy the dip from the Fed-day selloff.
But the dollar and gold tell the other story
Underneath the equity bounce, the message from the Fed was still doing its work. The dollar held a two-month high, with EUR/USD slipping to 1.1460, as traders priced in rates staying higher for longer. That weighed on metals. Gold fell about 1.1% to around $4,210; it actually spiked above $4,300 in early Asian trade on the Iran-deal signing, but the move faded fast once the dollar firmed. Silver was hit harder, down toward $65.6. Oil sat quietly near $79 on Brent. In short, stocks traded the good news while the dollar and the metals traded the Fed.
Live gold chart (last month). Prices shown are current, not the session covered above.
What it means for the day ahead
This is a market pulled in two directions: geopolitics and tech say buy, while a firm dollar and a hawkish Fed say be careful. For now the dollar is the instrument to watch, because as long as it holds its highs, gold and the other dollar-priced assets stay under pressure, whatever stocks are doing. Ranges can be wide when the narrative is this split, so the basics still rule: keep risk small per trade and size every position deliberately. If you want to understand the releases steering all of this, our guide to the economic events that move forex breaks them down.
This market wrap is for information and education only and is not financial advice, a forecast, or a recommendation to buy or sell any instrument. Prices and percentage moves are approximate, sourced from public price pages and reports, and may be delayed or revised. Trading forex, CFDs and leveraged products carries a high level of risk and may not be suitable for all investors; you can lose more than your deposit. Always do your own research.