US stocks closed higher on Thursday as investors looked past a renewed flare-up in US-Iran hostilities and instead focused on a rebound in semiconductor stocks ahead of SK Hynix’s much-anticipated Nasdaq trading debut. Falling oil prices helped calm nerves even as the US and Iran traded fresh strikes during the session, with all three major indexes finishing in positive territory.
What Moved Markets
The Nasdaq Composite led the way, climbing 336.24 points, or 1.30%, to close at 26,206.89, powered by a rally in chip and technology names. The S&P 500 added 60.93 points, or 0.81%, to finish at 7,543.64, while the Dow Jones Industrial Average rose 139.02 points, or 0.27%, to close at 52,487.41.
The gains came despite an escalation in the Middle East, where US forces carried out fresh airstrikes on Iranian targets and Iran retaliated against US-allied countries in the region, putting a fragile truce to the test. Oil prices fell on Thursday, however, erasing some of Wednesday’s gains as markets weighed the bumpy path toward a lasting peace. Investor attention was largely trained on Friday’s Nasdaq debut of SK Hynix, the South Korean memory chip giant, whose $28 billion US share offering was reportedly oversubscribed by more than seven times, underscoring strong appetite for AI-linked chip names. On the economic front, weekly initial jobless claims ticked down slightly to 215,000, while data released Thursday showed existing home sales fell 2.4% in June as affordability challenges continued to weigh on buyers.
Notable Movers
Micron Technology (MU) jumped 4.52% to $991.64 as semiconductor stocks broadly rallied ahead of the SK Hynix listing and on continued optimism around AI memory demand.
Carnival Corporation (CCL) rose 4.21% to $26.72 as cruise line stocks gained on falling oil prices and analyst commentary pointing to improving demand across mass-market and contemporary cruise categories, not just the luxury segment.
Delta Air Lines (DAL) climbed 2.21% to $89.00 as airline stocks rose broadly on easing oil prices, which reduced concerns about fuel costs weighing on carrier profits.
Costco Wholesale (COST) fell 4.21% to $912.97 after the retailer reported that June comparable sales growth slowed to 8.8%, down from a 12.5% pace in May, even as total net sales rose 10.6% year over year.
PepsiCo (PEP) dropped 3.25% to $137.86 after the company topped Wall Street’s revenue and earnings expectations but flagged that North American consumers are tightening their budgets amid rising inflationary pressures.
Looking Ahead
Investors will be watching SK Hynix’s Nasdaq debut on Friday as a key test of sentiment in the AI memory trade, along with second-quarter earnings from Delta Air Lines, due before Friday’s open. The path of US-Iran tensions and their effect on oil prices and the Strait of Hormuz will also remain in focus, along with any further economic data that could shape expectations for the Federal Reserve’s next move on interest rates.