US equities advanced on Thursday, with investors shifting focus from renewed US-Iran tensions to a tech sector rally. The market appeared to look past escalating conflict in the Middle East, instead concentrating on signs that the artificial intelligence investment boom remains robust following a significant chip stock sell-off earlier in the week.
Major US Indexes
At the close, the Dow Jones Industrial Average gained 139.02 points, or 0.27%, to 52,487.41. The Nasdaq Composite surged 336.24 points, or 1.30%, to 26,206.89. The S&P 500 added 60.95 points, or 0.81%, reaching 7,543.66.
Notable Stock Movers
In the technology space, Micron Technology (MU) shares rose 4.5%, while SanDisk Corp. (SNDK) jumped 7.5%. Western Digital (WDC) gained 5%. Meta Platforms, Inc. (META) shares climbed 4.7%. The Nasdaq Golden Dragon China Index edged up 0.56%, with iQiyi Inc. (IQ) soaring 8.5% and Alibaba (BABA) adding 2%.
Global Market Performance
European markets were mostly higher. Germany's DAX 30 index rose 0.96% to 25,104.47, and France's CAC 40 gained 0.90% to 8,326.62. The UK's FTSE 100, however, dipped 0.17% to 10,471.52. In Asia, Japan's Nikkei 225 advanced 1.38%, and South Korea's KOSPI increased 0.62%.
Currency and Crypto Markets
The US Dollar Index, which measures the greenback against a basket of six major currencies, slipped 0.09% to 100.904. Bitcoin rose more than 1.5% to $63,276.80, while Ethereum gained 0.38% to $1,748.09.
Commodities Update
Oil prices fell. New York-traded West Texas Intermediate crude for August delivery dropped 1.96% to settle at $72.08 per barrel. September Brent crude futures declined 2.2% to $76.30 a barrel. Spot gold moved higher to $4,124.09 per ounce, with spot silver at $59.976.
Key Economic and Corporate Developments
US Commerce Secretary Raimondo has urged SK hynix and Samsung Electronics to expand their memory chip production capacity in the United States to help alleviate a global shortage of critical components for AI development. Raimondo confirmed discussions with the Korean chipmakers are ongoing.
The average rate on a 30-year fixed mortgage in the US rose to 6.49%, reversing a decline from the prior week. Market participants are concerned that renewed US-Iran conflict could push oil prices higher and sustain elevated borrowing costs.
Dallas Fed President Logan suggested that a voluntary central clearing mechanism for the Federal Open Market Committee's operations could enhance efficiency and financial market stability.
The National Bank of Poland has taken advantage of recent price declines to purchase 82 tonnes of gold so far this year, according to Governor Glapiński. The central bank aims to hold 700 tonnes in its reserves.
Individual Company News
SK hynix has informed investors that the planned issue price for its US-listed American Depositary Receipts (ADRs) is $149 per share, according to people familiar with the matter. At this price, the ADRs would represent a premium of approximately 3.1% over the closing price of the ordinary shares in Korea on Thursday.
Meta Platforms, Inc. CEO Mark Zuckerberg stated the company is exploring the potential value of renting out portions of its AI infrastructure to external firms, despite needing as much computing power as it can get. He denied the company has overbuilt or possesses excess capacity, saying, "I don't know anyone in the industry who feels like they have too much compute."
Tesla Motors (TSLA) CEO Elon Musk acknowledged on social media that he had "clearly misjudged Anthropic," calling it the current leader in the AI industry. He stated he would not take actions to severely hinder the rival company's progress, citing his history of open practices at Tesla and SpaceX.
Analyst Actions
UBS Group raised its price target for Tesla Motors (TSLA) to $442 from $364.
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