The New York stock market rebounded despite ongoing tensions in the Middle East. Although clashes between the U.S. and Iran continued, a drop in international oil prices and strong performance from semiconductor stocks fueled buying interest in technology shares.
On July 9, the Dow Jones Industrial Average closed up 139.02 points, or 0.27%, at 52,487.41. The S&P 500 rose 60.93 points, or 0.81%, to finish at 7,543.64, while the Nasdaq Composite surged 336.24 points, or 1.30%, closing at 26,206.89.
Market participants were closely monitoring both the situation in the Middle East and the performance of technology stocks. Despite escalating military confrontations between the U.S. and Iran, investors assessed that oil flow through the Strait of Hormuz would not be significantly disrupted in the near term. Consequently, international oil prices fell, reversing the previous day's surge, which alleviated inflation concerns and supported the stock market.
Technology and semiconductor stocks led the gains. Reuters reported that expectations that China might allow limited access to Nvidia's H200 artificial intelligence (AI) chip, along with the successful U.S. market debut of SK Hynix, boosted investor sentiment in the semiconductor sector. The Philadelphia Semiconductor Index rose approximately 3% for the second consecutive day.
Micron also showed strong performance, announcing plans to expand its semiconductor production facilities and technology investments in the U.S. to over $250 billion by 2035. The stock surged more than 9% at one point during the day, ultimately closing up 4.42% at $991.64.
Apple shares increased by 0.86%. In contrast, Nvidia experienced fluctuations throughout the day, ultimately closing down 0.70%. Despite recent expectations for increased demand for AI semiconductors and potential easing of export restrictions, Nvidia faced profit-taking pressures.
In the bond market, Treasury yields fell. According to Reuters, the yield on the 10-year U.S. Treasury note dropped to 4.547%. The decline in oil prices eased some inflation concerns, leading to a recovery in risk appetite among investors.
Economic indicators presented a mixed picture. Weekly initial jobless claims in the U.S. decreased to 215,000, but housing sales remained sluggish due to high prices and a lack of inventory. Investors were keenly observing how employment and inflation trends would influence the Federal Reserve's interest rate decisions.
Looking ahead, the market is expected to continue monitoring developments in the Middle East and the performance of semiconductor stocks. If oil prices stabilize, a rebound in technology stocks may persist; however, renewed tensions in the Strait of Hormuz could heighten inflation and interest rate pressures once again.
* This article has been translated by AI.
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