US stock markets inched higher on Thursday, driven by a rebound in beaten-down technology stocks, as investors kept a close watch on Middle East tensions. Chipmakers like Intel and Nvidia led the recovery, while Oracle shares plunged on higher spending plans.
Wall Street's major indexes edged higher on Thursday, as investors sought bargains in technology stocks that had recently fallen into correction territory, while keeping a close watch on developments in the Middle East conflict. The S&P 500, Dow Jones, and Nasdaq all posted gains in early trading.
Key Points
- Chip stocks rebounded sharply after Wednesday's selloff, with Intel soaring 10% and Nvidia up 1.3%.
- Oracle shares plunged 12.5% after projecting higher capital spending for fiscal 2027.
- US President Donald Trump warned of hitting Iran hard, pushing oil prices higher.
- The Federal Reserve is expected to hold interest rates steady at its next meeting.
The S&P 500 technology index rose 1.4%, while the Philadelphia SE Semiconductor index advanced 4.5%. Intel led the charge with a 10% gain, while Nvidia and Micron Technology rose 1.3% and 2.4%, respectively. However, software shares came under pressure, down 2.2%, with Applovin and Atlassian falling about 3% each, and Servicenow, Salesforce, and Adobe declining between 2.2% and 3%.
Oracle shares tumbled 12.5% after the company projected capital spending plans for fiscal 2027 above Wall Street estimates. The broader market also faced headwinds from geopolitical tensions, as US President Donald Trump said Washington would hit Iran hard and soon take control of the country's oil and gas infrastructure. Oil prices edged higher on the news.
At 09:56 a.m. ET, the Dow Jones Industrial Average rose 450.39 points (0.90%) to 50,371.57, the S&P 500 gained 58.67 points (0.81%) to 7,325.66, and the Nasdaq Composite added 267.93 points (1.07%) to 25,437.44. Ten out of 11 major S&P 500 sectors were in the green, with industrial shares leading gains. Communication services dropped 1.5%, as Alphabet and Meta declined almost 2% each.
Data showed US producer prices increased more than expected in May, leading to the largest annual gain in over three years. Separately, the number of Americans filing claims for unemployment benefits increased marginally last week. The Federal Reserve is widely expected to hold interest rates steady at its policy meeting next week, with investors pricing in at least one 25 basis point rate hike by the end of the year.
The highly anticipated Friday market debut of Elon Musk's SpaceX, set to be valued at $1.75 trillion, could also test the rally this year that has repeatedly lifted stocks to record levels. Meanwhile, the World Bank cut its global growth forecast for 2026, citing the Middle East war, and warned that growth could slow to just 1.3% if energy supply disruptions prove severe.