Wall Street Rebounds Despite Still-Heated US-Iran Conflict
US stocks rose on Thursday (July 9), supported by a surge in semiconductor stocks and falling oil prices. This gain occurred as the market attempted to recover despite renewed tensions between the United States and Iran.
The Nasdaq Composite rose 1.30% to 26,206.89. The S&P 500 gained 0.81% to 7,543.64, while the Dow Jones Industrial Average added 139.02 points, or 0.27%, to 52,487.41.
The semiconductor sector was the main driver of Wall Street's rally. The VanEck Semiconductor ETF (SMH) rose 2.5%, led by a 4.5% rise in Micron Technology shares. SanDisk shares also jumped 7.6%.
Positive sentiment also came from falling oil prices. Weakening crude futures helped ease market concerns about energy inflation, especially after President Donald Trump said Iran had contacted the US to reach a deal.
However, geopolitical risks have not completely disappeared. For the second consecutive day, the US launched a new attack on Iran after Tehran attacked commercial shipping around the Strait of Hormuz. Disruptions in this vital waterway temporarily slowed shipping traffic and sparked concerns about global energy supplies.
The market is also monitoring mediation efforts by Qatar and Pakistan to bring the two sides back to the negotiating table. Hopes for diplomacy have encouraged investors to invest in riskier assets, despite the still-fragile geopolitical landscape.
In Europe, the Stoxx 600 index rose 0.8% as investors responded to falling oil prices and recovering global sentiment. Meanwhile, Asian markets were mixed, with Japan's Nikkei 225 rising 1.4% and South Korea's Kospi strengthening 0.62%.
In China, the CSI 300 surged 2.5%, while Hong Kong's Hang Seng fell 0.5%. These movements indicate that global investors remain selective in taking positions amidst the combination of geopolitical risks, oil prices, and the direction of interest rate policy.
For the market, Wall Street's rally signals that interest in technology stocks remains strong, particularly in the chip sector. However, this rally remains contingent on two key factors: whether oil prices continue to fall and whether the US-Iran conflict can return to diplomatic channels.
If Middle East tensions ease, technology stocks have the potential to continue strengthening. However, if attacks escalate and oil prices surge again, the market could revert to risk-off mode. (arl)
Source: Newsmaker.id
