U.S. Stocks Advance as AI Optimism Boosts Chipmakers and Oil Prices Retreat

U.S. stock markets moved higher on Thursday as investors renewed their focus on the artificial intelligence sector, while concerns over escalating tensions between the United States and Iran took a back seat.

The Nasdaq Composite led the gains, rising about 1.3% as technology and semiconductor stocks rebounded. The S&P 500 added roughly 0.8%, while the Dow Jones Industrial Average posted a more modest gain of over 0.2%, recovering after a mixed trading session on Wednesday.

Semiconductor Stocks Lead the Rally

Technology shares were among the day's strongest performers as investors looked ahead to the highly anticipated U.S. market debut of South Korean memory chip manufacturer SK Hynix, scheduled for Friday.

The company is expected to price its U.S. initial public offering (IPO) on Thursday, with investor demand reportedly exceeding the number of shares available by nearly seven times. The strong interest signals continued confidence in the long-term growth of artificial intelligence, despite recent volatility across the semiconductor industry.

The upcoming listing has renewed optimism throughout the AI supply chain, helping lift shares of several major chipmakers following recent market weakness.

Geopolitical Concerns Ease

Although tensions between Washington and Tehran intensified after both countries exchanged new military strikes, financial markets largely brushed aside the latest developments.

The United States reportedly carried out airstrikes targeting dozens of Iranian military sites, while Iran responded with attacks against locations linked to U.S. allies in the Middle East. Despite the renewed hostilities, investors appeared to view the conflict as unlikely to significantly disrupt global markets in the immediate term.

Oil prices declined during Thursday's session, giving back part of the gains recorded the previous day as traders reassessed the geopolitical risks and the outlook for energy supplies.

Economic Data Remains in Focus

On the economic front, the latest report on weekly initial jobless claims showed little change from the previous week, suggesting that the U.S. labor market remains relatively stable.

The data comes as investors continue evaluating when the Federal Reserve may be in a position to adjust interest rates later this year.

Meanwhile, PepsiCo released quarterly results showing stronger-than-expected revenue, although the company noted that many American consumers remain cautious with discretionary spending amid ongoing economic uncertainty and inflation concerns.

Investors Continue Watching AI Momentum

The renewed strength in semiconductor stocks underscores the market's continued belief that artificial intelligence will remain one of the primary drivers of technology investment.

As SK Hynix prepares to begin trading in the United States, investors will be watching closely to gauge demand for AI-related companies and determine whether enthusiasm for the sector can continue fueling gains across the broader technology market in the months ahead.