US open: Stocks rebound, oil drops on US-Iran peace deal

18th Jun 2026 12:34

(Sharecast News) - US stocks rose on Thursday, staging a partial rebound after heavy falls the previous session, following the signing of an initial peace deal between Washington and Tehran, causing oil prices to drop.

Shortly after the opening bell, the Dow was up 0.4%, while the S&P 500 and Nasdaq both gained 0.7%.

The three indices fell 1.0%, 1.2% and 1.3% respectively on Wednesday after the Federal Open Market Committee revised up its interest-rate projections for the next three years. The dot plot graph showed that nine of the Fed's 18 policymakers expect at least one rate hike before the end of 2026.

In a brief press conference following the decision to keep rates on hold, new Fed chief Kevin Warsh said policymakers were still "unambiguously and unanimously" committed to bringing inflation back to the Fed's 2% target. However, he added that "the Committee will deliver price stability", which markets took to mean the Fed is prepared to hike rates if necessary.

The news sent two-year US Treasury yields to their highest since February 2025 on Wednesday, though they were down 3.5 basis point at 4.160% in early morning trade on Thursday. 10-year bond yields, which also rose the previous session, were down 6.7bp at 4.434%.

Lifting sentiment across Wall Street on Thursday was the news that the US and Iran officially have signed a deal to end the war and reopen the vital Strait of Hormuz, with president Donald Trump saying the agreement was made to avoid an "economic catastrophe".

The agreement caused another slide in oil prices, with Brent down 2.6% at $77.51 a barrel and WTI crude down 3.7% at $73.97 - on track to settle at their lowest levels since before the outbreak of the Iran war in late-February. Notably, the average price for a gallon of gasoline across the US fell by the $4 mark for the first time since April.

"That has huge significance for inflation and interest rates, as well as business, consumer and investor sentiment. It takes the pressure off industries and households and is hugely positive for global economic growth," said Russ Mould, investment director at AJ Bell.

Shares in Accenture dropped 17% after the consultancy firm disappointed with current-quarter guidance. The Dublin-based company said it expects to generate revenues of $17.75bn-18.40bn for the fiscal fourth quarter, representing 1-5% growth in local currencies but short of the consensus forecast of $18.47bn. Accenture also announced a $4.2bn spending spree to beef up its cyber operations with three separate acquisitions.

Kroger also fell 7% after a mixed batch of fiscal quarter results. The grocery chain beat forecasts with a 2% increase in fiscal first-quarter sales to $46.12bn, but adjusted earnings per share of $1.58 missed analysts' estimates by a penny as margins fell year-on-year. Chief executive Greg Foran said he was "pleased" with the results but acknowledged "we know there is more work do".

Shares in Intel soared 10% after Donald Trump posted on Truth Social that Apple had agreed to partner with the US tech firm on semiconductor design, though neither company has so far commented on the president's post. A partnership would help bolster Intel's manufacturing business, while for Apple, it would help diversify its supplier base.