(Updates with latest market prices and developments.)
US benchmark equity indexes were higher intraday, while oil prices fell as markets reacted to the signing of an interim peace deal between Washington and Iran.
The Nasdaq Composite was up 1.6% at 26,445.7 after midday Thursday, while the S&P 500 rose 1.2% to 7,505.3. The Dow Jones Industrial Average advanced 0.4% to 51,717.6. The indexes closed the previous trading session lower.
Among sectors, technology paced the gainers intraday Thursday, while energy saw the steepest decline.
US markets will be closed Friday for the Juneteenth National Independence Day holiday.
West Texas Intermediate crude oil was down 2.1% at $75.19 a barrel intraday Thursday, while Brent fell 1.8% to $78.12.
The US signed a memorandum of understanding with Iran to end their war and reopen the Strait of Hormuz.
A 60-day period for negotiations on a final deal has started, CNN reported Thursday, citing US Vice President JD Vance, who added that technical talks are likely to commence this weekend.
"The relief in financial markets should not be mistaken for a complete dissolution of geopolitical risks but rather as a reaction to the reopening of the Strait of Hormuz," ING Bank said in a note.
"If the MoU really is the start of successful negotiations, we could eventually return to a macro world that we had actually expected at the start of this year: a gradually recovering global economy with risks of inflation undershooting and central bank rate cuts," the firm wrote.
US Treasury yields were lower intraday, with the 10-year rate down 2.9 basis points at 4.43% and the two-year rate dropping one basis point to 4.15%.
In economic news, weekly applications for unemployment insurance in the US dropped, while continuing claims moved higher, official data showed.
"Despite the bounce off the recent lows, the level of initial claims -- averaging just above 220,000 -- is still consistent with a broad range of labor market indicators that show the job market has improved but isn't overheating," Oxford Economics said in a note. "That will allow the (Federal Reserve) to keep (monetary) policy on hold while it waits for inflation to come down."
On Wednesday, the US central bank's Federal Open Market Committee left its benchmark lending rate unchanged for a fourth straight meeting. The FOMC removed the so-called easing bias from its latest statement while raising its interest rate expectations through 2028, saying inflation remains elevated.
In company news, Intel (INTC) shares were up nearly 11% intraday Thursday, the top gainer on the S&P 500. US President Donald Trump said on social media that Apple (AAPL) had agreed to work with Intel to design and build chips in the US.
Wedbush Securities said in a note that Apple's chip production deal with Intel represents a big opportunity for the semiconductor manufacturer.
Apple shares were up 0.7% intraday.
Accenture (ACN) trimmed the top end of its full-year revenue growth outlook as its sales fell short of market expectations in the fiscal third quarter, while the consulting firm announced three acquisition deals worth about $4.18 billion to expand its cybersecurity capabilities. Accenture shares were down 18% intraday, the steepest decline on the S&P 500.
Kroger (KR) was among the worst performers on the index, down 8.1%, as the supermarket chain reiterated its full-year outlook after its fiscal first-quarter sales topped market estimates, while earnings fell short of expectations.
Gold was down 3.1% at $4,247.90 per troy ounce, while silver decreased 6.3% to $66.79 per ounce.
