Wall Street closed higher on Thursday as renewed optimism over artificial intelligence and semiconductor stocks outweighed concerns over fresh military tensions in the Middle East, while oil prices retreated after the previous session’s surge.
The Nasdaq Composite led gains, rising 1.3%, followed by the S&P 500, which advanced 0.81%. The Dow Jones Industrial Average added 0.27%.
Technology stocks drove the rally after reports that China could allow domestic artificial intelligence firms limited access to Nvidia’s H200 chips. Investor sentiment also received a boost from reports that South Korean chipmaker SK Hynix’s planned US share listing was more than seven times oversubscribed.
The Philadelphia Semiconductor Index climbed 3%, extending gains for a second consecutive session as investors continued to favour AI-related counters.
The positive market performance came despite renewed hostilities between the US and Iran in the Gulf, with both countries launching military strikes as a fragile interim peace agreement deteriorated.
Oil prices, however, fell as investors assessed the latest developments. US crude settled 2.3% lower at US$71.83 a barrel, while Brent crude declined 2.5% to US$76.05 a barrel.
Economic data painted a mixed picture. Initial jobless claims fell by 2,000 to a seasonally adjusted 215,000 in the week ended July 4, signalling continued resilience in the labour market. However, existing home sales unexpectedly fell 2.4% last month as record-high house prices continued to weigh on affordability.
Meanwhile, the benchmark 10-year US Treasury yield edged lower to 4.547% after reaching a seven-week high in the previous session.
Gold prices rose 1.1% to US$4,121.12 an ounce as easing oil prices and ongoing geopolitical uncertainty supported demand for the safe-haven asset.
Reuters
