U.S. stock indices ended higher on Thursday as chipmaker stocks rebounded sharply, with the S&P 500 rising 0.8%, the Nasdaq 100 gaining 1.3%, and the Dow Jones Industrial Average adding 0.3%. The rally occurred ahead of SK Hynix's scheduled Nasdaq debut on July 10, while investors dismissed mounting geopolitical tensions involving the United States and Iran. The strength in semiconductor stocks came despite U.S. military operations against Iran for a second consecutive day following Tehran's strikes on commercial vessels near the Strait of Hormuz.
U.S. Stock Indices Post Gains Led by Chipmaker Stocks
The S&P 500 closed at 7,542.76, up 0.8% on Thursday. The Nasdaq 100 ended at 29,618.40, gaining 1.3%, while the Dow Jones Industrial Average finished at 52,477.72, up 0.3%. The Russell 2000, which tracks stocks with small market capitalizations, gained 1.2%.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) gained 0.8% and Invesco QQQ Trust (QQQ) ended Thursday around 1.6% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.3%.
The VanEck Semiconductor ETF (SMH) added 2.5%, amid gains in chipmaker stocks including Broadcom (AVGO) and Micron Tech (MU). The Philadelphia Semiconductor Index (SOX) rose nearly 3%. The Vanguard Information Technology ETF (VGT) jumped about 2%, taking support from sharp gains in Meta (META), Tesla (TSLA), Amazon (AMZN) and Apple (AAPL) stock.
SK Hynix Nasdaq Debut Scheduled for July 10
SK Hynix is scheduled to debut on the Nasdaq on July 10. The South Korea-based memory chip maker's U.S. listing was reportedly more than seven times oversubscribed, according to Bloomberg. South Korean equities entered bear market territory on Wednesday, with both Samsung's and SK Hynix's stock seeing significant drops. Some investors continue to doubt the rapid increases in chipmaker and memory stock values and the ability of these companies to meet such booming demand.
U.S. Conducts Military Operations Against Iran
The United States carried out a second consecutive day of new military operations against Iran, according to U.S. Central Command. This latest wave of operations was initiated following Tehran's strikes on commercial vessels near the Strait of Hormuz, a vital maritime channel where shipping traffic has slowed as a result.
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Matt Maley at Miller Tabak told Bloomberg that "Investors are much more focused on the upcoming earnings season than they are on the geopolitical front."
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FAQ
What caused U.S. stocks to rise on Thursday?
U.S. stock indices ended higher on Thursday as chipmaker stocks rebounded sharply ahead of SK Hynix's scheduled Nasdaq debut on July 10. The S&P 500 rose 0.8%, the Nasdaq 100 gained 1.3%, and the Dow Jones Industrial Average added 0.3%. The VanEck Semiconductor ETF (SMH) added 2.5%, while the Philadelphia Semiconductor Index (SOX) rose nearly 3%.
When is SK Hynix scheduled to debut on the Nasdaq?
SK Hynix is scheduled to debut on the Nasdaq on July 10. The South Korea-based memory chip maker's U.S. listing was reportedly more than seven times oversubscribed, according to Bloomberg.
How did geopolitical tensions affect U.S. stock markets on Thursday?
Investors shrugged off mounting geopolitical risks involving the U.S. and Iran on Thursday. The United States carried out a second consecutive day of new military operations against Iran following Tehran's strikes on commercial vessels near the Strait of Hormuz. Matt Maley at Miller Tabak told Bloomberg that "Investors are much more focused on the upcoming earnings season than they are on the geopolitical front."
