US Stocks Rise, Led by Tech and Chip Sectors; Dow Gains 139 Points

U.S. stock markets experienced a broad rally on Thursday, driven by gains in technology and semiconductor sectors, despite escalating U.S.-Iran tensions. The Philadelphia Semiconductor Index led the advance, soaring by 3.06%, while the Dow Jones Industrial Average closed up 139.02 points, or 0.27%. The Nasdaq Composite and S&P 500 also posted significant gains of 1.30% and 0.81%, respectively.

Investor sentiment was positively influenced by a decline in oil prices, with U.S. crude falling 2.0% and Brent crude down 2.2%. This dip occurred even as the U.S. and Iran announced military strikes in the Persian Gulf, signaling a breakdown in their fragile temporary peace agreement. Additionally, reports suggesting China might permit limited use of Nvidia's H200 chips provided a boost to market optimism.

Further supporting the tech sector, SK Hynix's U.S. ADR listing attracted strong demand, with over a sevenfold oversubscription. The offering aims to fund new factories and equipment for artificial intelligence chip production, potentially becoming the second-largest global stock issuance after SpaceX. While Nvidia saw a slight dip of 0.66%, competitors like AMD and Micron saw substantial increases of 5.67% and 4.52%, respectively. Intel also rose 2.09%.

Economic data presented a mixed picture. The number of Americans filing for unemployment benefits decreased last week, a positive sign for the labor market. However, a separate report indicated a surprising drop in housing sales, even as housing prices hit a new historical high. These conflicting signals suggest ongoing complexities in the U.S. economic landscape.