U.S.stock markets finished higher on Thursday, recovering from losses triggered the previous day by concerns over the Federal Reserve's policy outlook.The S&P 500 gained 1.08% to close at 7,500.58, while the Nasdaq Composite advanced 1.91% to 26,517.93.The Dow Jones Industrial Average posted a more modest gain of 72 points, ending at 51,564.70.

The rebound was led by semiconductor stocks after President Donald Trump announced that Intel would partner with Apple to design and manufacture chips in the United States.Intel surged more than 10%, while Nvidia and Micron Technology also posted strong gains.The broader semiconductor sector benefited significantly, with the iShares Semiconductor ETF rising more than 6%.Investors viewed the announcement as a positive sign for domestic chip production and future AI-related infrastructure development.

Despite lingering concerns following the Federal Reserve's latest meeting, where policymakers signaled the possibility of higher interest rates in 2026, market participants focused on positive economic indicators.Recent corporate earnings, stronger-than-expected employment data, and solid retail sales figures helped support investor confidence.

Economic reports released Thursday showed initial jobless claims remained relatively stable and manufacturing activity in the Philadelphia region improved more than expected.

Other notable developments included falling oil prices after a Middle East peace agreement, weakness in energy stocks, a sharp decline in Kroger shares after earnings, and gains in several AI-related technology companies.For the shortened trading week, the S&P 500 gained 0.9%, the Dow rose 0.7%, and the Nasdaq advanced 2.4%, extending the market's generally positive trend despite ongoing uncertainty about future monetary policy.