Stocks climb, oil slides as tech hopes outlast Middle East worries
By Pete Schröder
WASHINGTON, July 9 (Reuters) – Wall Street rose on Thursday as oil prices fell as investors’ interest in technology stocks reignited and concerns about renewed military action in the Middle East faded.
All three major US indices finished the day with gains; The Dow Jones Industrial Average was up 0.27%, the S&P 500 was up 0.81% and the Nasdaq Composite was up 1.3%.
MSCI’s gauge of stocks around the world rose 0.72%.
Stocks rise despite renewed conflict in Middle East; The United States and Iran have declared a military offensive in the Gulf as a tenuous interim peace deal frays. Oil prices, which rose when the US strikes were announced on Wednesday, fell on Thursday even as shipping activity in the critical Strait of Hormuz decreased once again.
While US crude oil fell 2.3 percent to close at $71.83 per barrel, Brent fell 2.5 percent to $76.05 per barrel.
TECHNOLOGY FOCUS
Global stock market sentiment was boosted by a report that China may allow limited access for domestic AI companies. artificial intelligence leader Nvidia’s H200 chips and SK Hynix’s upcoming $28 billion US stock listing was more than seven times oversubscribed, according to subsequent reports.
The South Korean chipmaker plans to raise about $26.5 billion by pricing American Depository Receipts at $149, Reuters reported on Thursday.
The offering, which would fund new factories and equipment to meet growing demand for AI chips, would be the world’s second-largest share sale after SpaceX’s record-breaking $85.7 billion IPO last month.
The Philadelphia SE Semiconductor index closed its second day of gains on Thursday, rising 3%.
US economic data was mixed last week as the number of Americans filing for unemployment benefits fell, but a separate report revealed home sales unexpectedly fell as home prices hit a record high.
Initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 215,000 for the week ending July 4, the Labor Department said Thursday.
The National Association of Realtors found that tight inventory is driving up prices, underscoring the affordability challenges facing many potential homeowners in the United States. Home sales fell 2.4% last month to a seasonally adjusted annual rate of 4.09 million units. Economists polled by Reuters had predicted home sales would rise to 4.20 million units.
Benchmark 10-year U.S. Treasury yields fell to 4.547% after reaching a seven-week high on Wednesday.
Foreign exchange markets remained relatively quiet, with the dollar index, which measures the dollar’s value against a basket of currencies including the yen and euro, falling 0.08 percent to 100.94. Sterling strengthened 0.15% to $1.3406, hitting a four-week high after hitting a seven-month low in late June.
