(Updates with index/price moves and political/company news from the first paragraph.)

US equity indexes rose amid a rally in mega-cap semiconductors and as crude oil extended declines to the lowest in more than three months after a signing of the interim Iran peace deal set the stage for an immediate reopening of the Strait of Hormuz.

The Nasdaq Composite advanced 1.3% to 26,372.2, with the S&P 500 up 1.1% to 7,499.8 and the Dow Jones Industrial Average higher by 0.6% to 51,798.5 in midday trading Thursday.

All sectors except energy, health care, and consumer staples rose. Technology led the gainers.

President Donald Trump and Iranian President Masoud Pezeshkian digitally signed a memorandum of understanding targeting a permanent peace deal to end the war between the US and Iran.

"Upon the signing of this MOU, the Islamic Republic of Iran will make arrangements using its best efforts for the safe passage of commercial vessels with no charge for 60 days only from the Persian Gulf to the Sea of Oman and vice versa," Reuters cited one of the clauses in the framework agreement. "The traffic of commercial vessels will immediately start and, considering the need for removing the technical and military obstacles and de-mining by the Islamic Republic of Iran, will be instated within 30 days."

Crude oil futures declined, with front-month global benchmark North Sea Brent slumping 3% to $77.15 per barrel after midday. The US West Texas Intermediate sank 3.5% to $74.09 per barrel, the lowest level since around early March.

In company news, Intel (INTC) shares surged 8.4%, among the leaders on the S&P 500 and the Nasdaq, after Trump said Apple (AAPL) has agreed to work with Intel to design and build chips in the US.