Stocks rise on Wall Street, erasing much of their loss from a day earlier

NEW YORK (AP) — Stocks rose on Wall Street Thursday, taking back most of their losses from a day earlier, and are on track to notch weekly gains.

The S&P 500 rose 1.1%. The Dow Jones Industrial Average rose 302 points, or 0.6%, as of 10:49 a.m. Eastern. The Nasdaq composite jumped 1.4%. Every major index is on track for weekly gains. U.S. markets will be closed Friday for Juneteenth.

The gains are helping to cut losses from a day earlier that were driven by anticipation that the Federal Reserve will likely raise interest rates this year in an effort to fight inflation. Bond yields are pulling back. That, along with falling oil prices, is relieving much of the pressure on stocks.

The gains were broad and being led by technology stocks. Intel surged 7% after President Donald Trump announced that the semiconductor giant will make chips for Apple in the U.S. Other big semiconductor companies gained ground. Nvidia rose 2.2% and Micron Technology surged 7.7%.

On the losing end, SpaceX fell for the second straight day since its ballyhooed debut on the U.S. stock market last week. The Elon Musk-led rocket maker and AI company was down 6.5% following a 4.9% loss Wednesday.

Crude oil prices continued to fall after the United States and Iran signed an agreement to end their war and reopen the Strait of Hormuz to oil tanker traffic. Brent crude, the international standard, fell 3% to $77.20 per barrel. U.S. benchmark crude fell 3.4% to $73.46 per barrel.

Easing oil prices are relieving pressure on companies that rely heavily on fuel. Airlines had some of the bigger gains. American Airlines rose 4% and United Airlines rose 4%. Cruise line company Carnival jumped 3.4%.

Energy companies, though, lost ground on falling oil prices. Exxon Mobil fell 2.7% and Chevron fell 2.1%.

Prices for crude oil are still above roughly $70 per barrel from before the war, but are well below the $100-plus price from a few weeks ago.

Higher oil prices had been weighing on markets throughout the U.S. war with Iran. The current deal between the nations waives sanctions against Iran and allows it to sell its oil freely. It also opens up the Strait of Hormuz, where a fifth of the world’s oil supply is shipped.

Rising energy costs have also been putting more pressure on already hot inflation. The average price of gasoline in the U.S. has dipped below $4 a gallon, but is still 25% higher from a year ago. Prices have been rising for a wide range of goods because of higher shipping costs.

Hotter inflation prompted the Federal Reserve to shift course from cutting its benchmark interest rate to likely raising rates by the end of the year. Lower interest rates can boost the economy by making borrowing easier for businesses and households, but it also tends to stoke inflation.

The Fed has been trying to balance its job of curbing inflation while supporting employment growth. The jobs market has remained relatively strong amid rising inflation, with low unemployment and solid job growth.

The central bank closed its two-day meeting on Wednesday by maintaining its benchmark interest rate at its current level. But it signaled that it will likely raise the rate at least once by December.

That prompted a jump in bond yields on Wednesday, but they eased on Thursday.

The yield on the 10-year Treasury fell to 4.43% from 4.49% late Wednesday. The yield on 2-year Treasury, which more closely tracks action by the Fed, fell to 4.15% from 4.20% late Wednesday.

Markets were mixed in Europe and Asia.

Senior Producer Mayuko Ono contributed to this report.

Trader Matthew Cheslock, right, works on the floor of the New York Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

A man stands by a screen showing Japan's Nikkei 225 index at a securities firm in Tokyo, Thursday, June 18, 2026. (AP Photo/Hiro Komae)

A woman walks past a screen, right, showing Japan's Nikkei 225 index at a securities firm in Tokyo, Thursday, June 18, 2026. (AP Photo/Hiro Komae)

A statue is placed on a bench near monitors showing Japan's Nikkei 225 index, hanging in a business building in Tokyo, Thursday, June 18, 2026. (AP Photo/Hiro Komae)

A dealer walks past near the screens showing the foreign exchange rates at a dealing room of Hana Bank in Seoul, South Korea, Thursday, June 18, 2026. (AP Photo/Lee Jin-man)

A TV cameraman films the screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Thursday, June 18, 2026. (AP Photo/Lee Jin-man)

A board above the trading floor of the New York Stock Exchange displays the closing number for the Dow Jones industrial average, Wednesday, June 17, 2026. (AP Photo/Richard Drew)

Dealers work at a dealing room of Hana Bank in Seoul, South Korea, Thursday, June 18, 2026. (AP Photo/Lee Jin-man)

Electronic boards show Japan's benchmark Nikkei 225 index in Tokyo Thursday, June 18, 2026. (Kyodo News via AP)

WASHINGTON (AP) — The Supreme Court sided Thursday with a Texas marijuana user who wants to legally own a gun, the latest in a line of firearm cases from a court that has expanded gun rights.

In a unanimous decision, the justices ruled in favor of Ali Danial Hemani, who argued that a law barring guns from anyone who uses drugs illegally violates the Second Amendment. Hemani wasn’t charged with any other crimes or accused of using the weapon under the influence.

Justice Neil Gorsuch wrote the opinion, saying the ruling limits but doesn't end the government's power to take guns from drug users.

The decision is a loss for President Donald Trump’s Republican administration, which had defended the 1968 law despite arguing against other gun restrictions. The measure was also used in a case against Hunter Biden, who was convicted in Wilmington, Delaware, of buying a gun while addicted to cocaine in 2018. He was later pardoned by his father, then-President Joe Biden, a Democrat.

Someone addicted to a drug could still be prosecuted after Thursday's decision, Gorsuch wrote. “We do not address efforts to ban addicts, or those presently intoxicated, from possessing a firearm,” he wrote. Prosecutors could potentially still charge a marijuana user, if they had evidence the person was dangerous.

It's the latest in a series of firearm cases to reach the Supreme Court since a landmark ruling expanding gun rights in 2022 led to a wave of challenges around the country.

Since then, the high court has upheld a law aimed at protecting victims of domestic violence and strict regulations on ghost gun kits but has struck down a ban on bump stocks, an accessory that enables rapid fire. The justices are also considering a second firearm case this term over strict regulations on carrying guns in Hawaii.

The Texas case comes after significant shifts in the legality and use of cannabis. More than half of U.S. states have now legalized it broadly, and it’s gained widespread use for health purposes.

“Whatever one thinks of these developments, the federal government has not just tolerated them; it helped fuel them,” Gorsuch wrote. “All of which leaves it awkwardly positioned to suggest that the millions of Americans who now regularly use marijuana are categorically and unusually dangerous.”

Recreational use remains illegal on a federal level even after the Trump administration reclassified medical marijuana as a less-dangerous drug in April.

It’s rare to see standalone criminal charges filed against people accused solely of owning guns and using drugs. The charge is more often filed against people also accused of other crimes.

The case made for some unusual political alliances. The American Civil Liberties Union and the National Rifle Association both supported Hemani’s case, as did cannabis legalization groups like NORML. On the other side were gun safety groups like Everytown that usually oppose the Trump administration on Second Amendment issues.

Follow the AP’s coverage of the U.S. Supreme Court at https://apnews.com/hub/us-supreme-court.

FILE - Marijuana clones are shown for sale at Tropicanna Dispensary and Weed Delivery in Santa Ana, Calif., April 23, 2026.(AP Photo/Jae C. Hong, File)

FILE - The U.S. Supreme Court is seen, June 11, 2026, in Washington. (AP Photo/Mariam Zuhaib, File)