Wall Street Surges Despite Interest Rate Hike, Chip Stocks Lead Gains

Wall Street concluded the trading day with sharp gains, driven primarily by a surge in chip and technology stocks. The Nasdaq Composite climbed approximately 1.7%, the S&P 500 rose 1.1%, and the Dow Jones Industrial Average increased by 0.6%, translating to over 250 points.

Intel was a major focus, with its stock jumping around 8% following reports of potential talks with South Korea's SK Hynix regarding memory chip production in the United States. One possibility being explored involves utilizing Intel's facility under construction in Ohio, either through a lease agreement or a joint venture. Other semiconductor stocks also experienced a strong day, with the Philadelphia Semiconductor Index soaring over 3%. AMD shares advanced more than 6%, Nvidia added about 2.5%, and Micron gained over 5%.

Investor sentiment was also buoyed by a decline in oil prices and easing yields on government bonds. The yield on the benchmark 10-year U.S. Treasury note retreated to approximately 4.93%, a welcome development after recent pressure on growth and technology stocks.

The market's positive performance occurred the day after the Federal Reserve raised its benchmark interest rate by a quarter percentage point to a range of 3.75% to 4%. Despite the Fed's hawkish tone and the possibility of further increases, investors expressed optimism about the central bank's ability to curb inflation without triggering a severe economic slowdown.

Among Israeli companies, Tower Semiconductor stood out. The company announced, along with NewPhotonics, the commencement of commercial-scale deliveries for optical engines integrated with lasers.