US stocks climbed on Thursday, with tech stocks leading as investors digested the signing of the interim US-Iran peace deal and the latest Federal Reserve decision on interest rates.

The tech-heavy Nasdaq Composite (^IXIC) surged nearly 2%, while the S&P 500 (^GSPC) moved up 1.1%. The Dow Jones Industrial Average (^DJI) lagged, gaining about 0.3%, coming off sharp closing losses for Wall Street stocks.

President Trump and his Iranian counterpart on Wednesday signed the memo outlining their countries' peace agreement. The deal, which included the reopening of the Strait of Hormuz to commercial traffic, went into effect. The US also removed its naval blockade in the region. Negotiations on more protracted issues, including Tehran's nuclear program, are expected to take place over the next 60 days.

Brent crude futures (BZ=F) have chipped away at much of their war-time gains in recent weeks. On Thursday, Brent hovered at around $79 a barrel and West Texas Intermediate (CL=F) above $75 amid increased crossings of the strait.

Meanwhile, investors eyed the chances that rates will stay higher for longer after more Fed officials signaled a hike is on the table for later this year, after standing pat on policy in their decision on Wednesday.

The central bank's hawkish tilt comes as inflation has remained elevated and the job market steady amid conflict with Iran. Data from the Labor Department on Thursday showed initial jobless claims were slightly hotter than estimates but cooled over the week prior.

Thursday will be the last day of trading for Wall Street stock markets, which will close on Friday to observe the Juneteenth holiday.