We saw the market finish the shortened holiday week on a strong note as investors returned to risk assets following the U.S.-Iran peace agreement and a sharp decline in oil prices. The major indexes recovered much of Wednesday's Fed-related weakness, with technology and semiconductor stocks leading the advance.

The biggest story was the powerful rebound in semiconductors. The Philadelphia Semiconductor Index surged more than 6%, helping drive the Nasdaq sharply higher. Intel was a major contributor after announcing a significant chip partnership with Apple. Broad participation from small-cap stocks was also encouraging and suggests today's rally was not limited to just a handful of mega-cap names.

Intel broke out sharply today on exceptionally heavy volume after announcing its partnership with Apple. The stock closed near its highs of the day and is now attempting to emerge from a multi-month base. If Intel can hold this breakout, it could attract additional institutional interest and potentially become a new leadership candidate within the semiconductor group.

Source -

https://stockcharts.com/sc3/ui/?s=INTC&a=2293742955&p=D&yr=1&mn=2&dy=0&id=p21101482153

Investor sentiment improved considerably as oil prices fell back toward pre-conflict levels and fears of a prolonged Middle East disruption eased. Lower energy prices helped reduce inflation concerns and offset some of the market's worries following the Federal Reserve meeting.

I view today's internals as constructive. Small caps outperformed, breadth expanded, and economically sensitive sectors participated in the advance. This is the type of action we want to see after a period of volatility.

The bulls regained control today. While the Fed remains a potential headwind, the market continues to respond favorably to easing geopolitical tensions, falling oil prices, and strong leadership from semiconductors.

I will be watching whether breadth remains healthy next week, whether equal-weight indexes continue to outperform, and whether leadership broadens beyond technology. For now, the trend remains higher, and today's action was another positive sign for the bulls.

The market is closed tomorrow for the Juneteenth holiday.