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US equities showed mixed performance as the Dow Jones Industrial Average fell 0.35% to 49,137.38. At the same time, the S&P 500 rose 0.21% to 7,122.98, while the NASDAQ gained 0.63% to 24,592.41. Market activity reflected cautious trading across sectors as US chip stocks soared to record highs.
Investor sentiment improved after reports suggested the possible resumption of US-Iran discussions. A Pakistani source said Iran’s foreign minister, Abbas Araqchi, may travel to Islamabad, where earlier diplomatic talks had taken place. However, the report also stated that no direct confirmation of US talks was included.
Oil prices remained a key concern. Brent crude stayed about 44% above pre-conflict levels due to disruptions in the Strait of Hormuz. Market participants continued to monitor energy supply risks linked to the regional situation.
Technology shares supported broader market gains, with Intel leading the sector. The company’s shares jumped 24.5% after it released a stronger-than-expected second-quarter revenue outlook. The stock reached a record level during the session.
Analysts linked the move to the demand for central processors used in artificial intelligence systems. Rival chipmakers also gained, with AMD rising 12.5% and Arm increasing 12%. NVIDIA added 1.6% as chip stocks extended momentum.
The Philadelphia Semiconductor Index rose 3.2% and moved toward its 18th straight day of gains. The index has increased more than 47% this year, supported by investment in AI infrastructure across major technology firms.
Corporate earnings also influenced trading direction. Coursera shares fell 14.2% after its quarterly results. In contrast, several large companies in healthcare and consumer goods reported gains following stronger-than-expected results.
At the sector level, information technology increased 1.2%, while healthcare declined 1.4%. Financial stocks, including Goldman Sachs and JPMorgan Chase, weighed on the Dow and limited overall gains.
Market participants are also focused on the upcoming Federal Reserve meeting. Data from LSEG showed traders expect a 99.5% probability that interest rates will remain unchanged. Attention is now directed toward policy commentary on inflation and energy costs.
The semiconductor sector continued to attract attention as AI-related demand supported earnings forecasts. Industry data showed expected earnings growth of 109.2% for chipmakers, compared with 48.2% for the wider technology sector.
Intel’s performance reflected rising demand for processors used in AI systems. “We are seeing solid results, especially for semiconductors and no sign that demand for AI is slowing down,” said Angelo Kourkafas.
The broader chip rally included gains across major firms such as AMD and Qualcomm. Some analysts noted that valuation levels have adjusted compared with previous highs, which has supported renewed investor participation in technology shares.
Technology stocks also reacted to developments in artificial intelligence competition. Chinese startup DeepSeek released a preview of a new AI model designed for Huawei chip systems. Despite earlier concerns, US technology shares remained steady during the session.
Market commentary suggested that investor concerns linked to low-cost AI competition have eased. “The market’s saying, ‘we’re not going to be bitten twice with this,” said David Morrison in reference to earlier market reactions.
Investors continue to monitor earnings from major technology firms and upcoming economic data. The combination of corporate results, policy expectations, and geopolitical developments is shaping short-term market direction.
