Wall Street experienced a significant uptick on Thursday, with major indices closing in positive territory. The advance was largely propelled by a strong performance in chip stocks, which helped to offset anxieties surrounding escalating tensions in the Middle East. The Nasdaq Composite led the gains, rising 1.3%, followed by the S&P 500, which advanced 0.81%, and the Dow Jones Industrial Average, up 0.27%.
The rally in technology, particularly in the semiconductor sector, was fueled by positive news regarding artificial intelligence and chip production. Reports that China might allow limited access to Nvidia's H200 chips for domestic AI firms, coupled with strong demand for South Korean chipmaker SK Hynix's upcoming U. S. listing, boosted investor sentiment. The Philadelphia Semiconductor Index climbed 3%, extending its recent gains. Advanced Micro Devices (AMD) saw its shares jump significantly, with analysts at Goldman Sachs raising their price target and citing a "CPU renaissance" driven by agentic AI. Micron Technology also announced substantial investment plans in the U. S. to bolster its semiconductor supply chain.
Meanwhile, oil prices experienced a notable retreat. After surging earlier in the week due to geopolitical escalations, crude futures settled lower as investors assessed the latest developments. U. S. crude fell 2.3% to $71.83 a barrel, and Brent crude declined 2.5% to $76.05 a barrel. This easing in energy prices provided additional support to the broader market.
Economic data presented a mixed but generally resilient picture. Initial jobless claims saw a decrease, signaling continued strength in the labor market. However, existing home sales unexpectedly declined, likely due to high housing prices impacting affordability. The benchmark 10-year U. S. Treasury yield edged lower to 4.547%, offering some relief to interest-rate sensitive sectors. The market appears to be balancing geopolitical risks with the ongoing artificial intelligence boom and signs of economic stability.
