* Oil prices nearing four-month lows as Gulf tankers looked
set to resume Hormuz transit
* Dollar hit its highest in a year against major currencies
as investors sought safer havens
* Gold prices near seven-month low
(New throughout, updates prices and adds analyst comment)
By Chibuike Oguh and Amanda Cooper
NEW YORK/LONDON, June 24 (Reuters) - Stocks rebounded on
Wednesday from a rout in technology shares partly driven by
concerns about stretched valuations, while the dollar climbed to
a one-year peak.
Technology stocks, which were hit hard on Tuesday, edged up
ahead of earnings from chipmaker Micron, whose products help
power the AI boom. But sentiment remained fragile as investors
priced in at least one rate hike from the Federal Reserve this
year.
On Wall Street, all three indexes were higher with consumer
discretionary, industrials and materials stocks driving gains.
Energy stocks were the biggest losers as the continued flow of
crude oil through the Strait of Hormuz pushed prices toward
four-month lows.
The Dow Jones Industrial Average rose 1.12%, the S&P
500 rose 0.84%, and the Nasdaq Composite rose
0.89%.
"We're probably approaching peak hawkishness in terms of
interpreting the Fed's new stance and it looks like that's
what's primarily driving asset prices," said Wasif Latif, chief
investment officer at Sarmaya Partners.
"Today, there's a bit of balance in equities that can be
related to the bounce off the pretty meaningful selloff
yesterday but also investors are trying to anticipate and
position the upcoming earnings announcement from Micron."
MSCI's gauge of stocks across the globe
rose 0.45%.
MSCI's index of Asian equities outside Japan
rose 0.15%. South Korea's KOSPI gained 3.5% after
dropping 10% in the prior session.
In Europe, the broader regional stock market was roughly
unchanged on the day. A 15% plunge in shares of defence
company Rheinmetall, after media reports of the German
government planning to scrap a delayed multibillion-euro frigate
project, was partly offset by gains in a scattering of
heavyweight luxury and tech stocks.
STRAIT OF HORMUZ
Crude oil prices fell, extending this week's losses and
trading near four-month lows, on signs that more tankers
stranded in the Gulf are set to move out of the Strait of
Hormuz.
There is a lot of uncertainty about the outlook, given the
U.S. and Iran have provided conflicting accounts about what the
two countries have agreed as part of their peace deal, including
key elements such as nuclear inspections and control of the
strait.
Brent fell to $73.53 per barrel, down 4.55% on the day.
DOLLAR JUMPS
The U.S. dollar rose for a third straight day against a
basket of major currencies to its highest in a year as markets
anticipate Fed rate hikes.
The euro, however, was one of the main victims of dollar
strength, as investors lowered their expectations for the
European Central Bank to raise rates much more this year, while
pricing in a greater chance that the Fed will lift borrowing
costs.
The euro was trading around its lowest in a year,
down for a third day at $1.1354.
The yen was also weaker on the day, trading around
161.77, keeping markets on edge over a potential currency
intervention to prop up the battered Japanese currency.
The dollar index rose 0.21% to 101.60, hitting its
highest level since May 2025.
Gold prices fell to a more than seven-month low under
pressure from a firmer U.S. dollar.
Spot gold fell 2.35% to $4,011.69 an ounce.