TLDR
- The Nasdaq rose 1.2%, the S&P 500 gained 0.8%, and the Dow added 0.4% on Thursday
- SK Hynix’s Nasdaq debut on Friday is drawing strong investor interest, with demand seven times the available shares
- U.S.-Iran tensions escalated as the U.S. struck 90 Iranian targets; Iran hit back at U.S.-allied nations
- Oil prices fell Thursday, partially erasing Wednesday’s gains despite ongoing Middle East conflict
- Pepsi’s results showed consumers are cutting spending due to economic concerns, even as revenue beat expectations
U.S. stocks moved higher on Thursday, led by the Nasdaq, as investors looked past rising U.S.-Iran tensions and focused on the coming AI-related IPO from SK Hynix.
The Nasdaq Composite rose 1.2%, while the S&P 500 gained 0.8%. The Dow Jones Industrial Average climbed around 0.4%.
Most sectors participated in the gains. The Equal Weight S&P 500 outpaced the standard index, suggesting broad market participation rather than a move driven by just a handful of large companies.
The energy, consumer staples, and healthcare sectors were the exceptions, finishing in the red. That pattern is consistent with a risk-on day, where investors favor growth over defensive holdings.
SK Hynix IPO Draws Heavy Demand
The main driver of optimism Thursday was SK Hynix, the South Korean memory chipmaker. The company is set to price its U.S. offering Thursday ahead of a Nasdaq debut on Friday.
Demand for the IPO is running at seven times the number of shares available, a sign of strong interest from investors betting on continued AI infrastructure growth.
The IPO comes after a rough stretch for chip stocks. Recent selling in the sector had raised questions about how long the AI-driven rally could last.
Market Shrugs Off U.S.-Iran Escalation
Geopolitical risk was front and center Thursday. The U.S. launched airstrikes on 90 Iranian targets, and Iran responded by striking locations in U.S.-allied countries in the Middle East.
Despite the escalation, Wall Street largely absorbed the news without major selling. Stocks held their gains through the session.
Oil prices dropped on Thursday, giving back some of Wednesday’s rise. Markets seemed to price in a difficult path toward peace without fully pricing in a worst-case scenario.
Treasury yields saw little movement. The dollar held steady.
Other Market Movers
Weekly jobless claims came in with little change from the prior week. The data adds to the ongoing picture investors are building as they try to predict when interest rates might move.
Pepsi reported earnings Thursday. Revenue came in above expectations, but the company said American consumers are pulling back on spending because of economic concerns.
Within the Roundhill Magnificent Seven ETF, Meta and Tesla posted gains, helping offset losses from Nvidia and Alphabet.
The ETF closed slightly in the green after recovering from deeper losses during the session.
As of early afternoon trading, the Nasdaq stood at roughly 26,194, with the S&P 500 near 7,546 and the Dow around 52,550.
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