US stocks moved higher on Thursday as investors assessed the latest turn in US-Iran tensions and renewed buying in chip stocks. The NASDAQ Composite led the market, while the S&P 500 also gained. The Dow Jones Industrial Average traded near the flatline as investors balanced geopolitical risk, oil prices, labor data, and fresh interest in the AI trade.

NASDAQ Gains as Chip Stocks Lead the Market

The NASDAQ Composite rose 0.6% on Thursday, supported by strong gains in semiconductor shares. The S&P 500 advanced 0.3%, while the Dow Jones Industrial Average traded little changed after a weaker session on Wednesday.

Chipmakers led the early rebound. The VanEck Semiconductor ETF climbed 4%, with Micron Technology rising 7%. Sandisk also gained 6%. The move showed that investors returned to selected technology names, even as broader market caution stayed in place.

The chip sector drew fresh attention ahead of SK Hynix’s expected US-listed share debut. The South Korean memory chipmaker is set to list on NASDAQ, and demand for its offering has become a focus for investors tracking AI-related stocks.

Meanwhile, traders also watched whether the latest gains could hold through the session. Semiconductor stocks had faced recent pressure, but Thursday’s move helped lift the NASDAQ above the other major US indexes.

US-Iran Tensions Keep Markets Cautious

Markets also tracked renewed conflict between the US and Iran. US Central Command said the United States launched fresh strikes on Iran after attacks on commercial shipping near the Strait of Hormuz. It later said another round of strikes had been completed.

Iran also carried out attacks on targets linked to US allies in the Middle East. The exchange of fire raised concern over energy supplies and shipping routes, especially around the Strait of Hormuz, a key passage for global oil flows.

President Donald Trump had said the ceasefire with Iran was ‘over’ after new attacks in the region. Later, he said he called Iran to make a deal, which helped ease some pressure on crude futures.

Mason Mendez, global real assets analyst at Wells Fargo Investment Institute, said, “Any assumption of a swift return to normalized Persian Gulf exports is certainly being challenged.” He added that low global reserves and inventories could keep a geopolitical risk premium in oil prices if tensions rise further.

Oil Prices Stabilize After Sharp Swings

Oil prices held steadier on Thursday after sharp moves in the previous session. Brent crude slipped 0.3% in early trading after rising on Wednesday as traders reacted to the renewed fighting.

The oil market stayed focused on possible supply disruption. Any fall in shipping activity through the Strait of Hormuz can raise concern over global supply, as the route handles a large share of seaborne crude shipments.

Even so, investors did not move fully into risk-off trading. US stock indexes opened higher, and markets across Europe and Asia also showed mixed but generally stable trading.

European stocks edged higher, with the Stoxx 600 up 0.1%. In Asia, Japan’s Nikkei 225 rose 1.4%, South Korea’s Kospi gained 0.62%, and mainland China’s CSI 300 closed 2.5% higher. Hong Kong’s Hang Seng index traded lower late in the session.

Jobless Claims Add to Rate Outlook Watch

US labor data also stayed in focus. Initial jobless claims fell to 215,000 for the week ended July 4, down 4,000 from the prior week. Economists surveyed by Dow Jones had expected 218,000 claims.

The data showed a mild drop in new unemployment filings after an early June spike. Continuing claims, which ran one week behind, increased by 8,000 to 1.814 million.

Investors used the report as another signal for the Federal Reserve’s policy path. A steady labor market can affect expectations for interest rates, especially as traders watch inflation, oil prices, and global tensions.

On Thursday, the data did not stop stocks from opening higher. The S&P 500 rose 0.2% shortly after the opening bell, the NASDAQ climbed 0.2%, and the Dow added 63 points, or 0.1%, before later trading near the flatline.

Wall Street Turns Back to AI Trade

As Middle East tensions stayed in focus, investors also returned to the AI trade. Chip stocks gained as traders prepared for SK Hynix’s US debut and assessed demand for memory chips used in AI systems.

Pepsi’s results added another market signal, as the company showed that some US consumers are spending carefully due to economic concerns. Its revenue still topped expectations, giving investors another view of consumer demand.

Mendez said, “These renewed geopolitical risks could fuel near-term risk-off sentiment, however, trends of strong equity earnings momentum and ongoing AI strengths will likely continue to drive the S&P 500 Index towards our year-end target range of 7,800 to 8,000.”

For now, the US stock market trading today shows a split picture. Chip stocks and AI names are helping the NASDAQ rise, while oil prices and US-Iran tensions keep traders alert.

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