Chipmakers Offset Tensions in the Middle East: U.S. Stocks Rise

The S&P 500 and the Nasdaq Composite opened higher on July 9: the market was buoyed by chipmakers’ stocks, which were rebounding from this month’s plunge, according to Reuters and Bloomberg. Their gains helped offset growing tensions between the U.S. and Iran in the stock market.

In the first few minutes of trading, the broad U.S. stock index, the S&P 500, rose 0.35%, while the tech-heavy Nasdaq Composite gained 0.57%; and the Dow Jones Industrial Average initially dipped slightly into negative territory but then managed to recoup those losses and, at the time of publication, is up a symbolic 0.04%.

The Philadelphia Semiconductor Index, which had fallen 12% since the beginning of July, rose more than 5% on Thursday. Taking into account the gains from the previous session, the index has already recouped its recent losses: over the past 30 days, it has risen by 0.37%.

Market sentiment was buoyed, among other things, by strong demand for shares of South Korean memory chip maker SK Hynix ahead of its U.S. listing, according to Bloomberg. The agency found that the order book for the company’s American Depositary Receipts (ADRs) was oversubscribed more than seven times. Through this secondary offering, SK Hynix could raise approximately $24.5 billion, which would mark the second-largest debut by a foreign issuer in the U.S. in history.

Meanwhile, oil futures are falling from their recent —nearly one-month—highs as investors assess whether the escalation of the conflict in the Middle East will lead to a full-scale resumption of the war, according to The Wall Street Journal (WSJ). Brent contracts for September delivery are down 0.7% from the previous close, trading around $77.5 per barrel. U.S. WTI is trading at $72.7, down 1% from the previous day’s price.

The VIX volatility index, also known as the “Wall Street fear index,” is down nearly 2.5%—it stands at 16.5 points (any reading above 20 indicates heightened market volatility).

Spot gold is up 1% to $4,119 per ounce. Spot silver is up nearly 3% to $59.9.

On Wednesday night, the U.S. and Iran exchanged strikes on each other’s positions in the Middle East for the second time in the past two days. Afterward, U.S. President Donald Trump told reporters aboard Air Force One that Tehran had allegedly asked to strike a deal. A few hours earlier, speaking alongside NATO Secretary General Mark Rutte at the alliance’s summit in Turkey, Trump emphasized that the Washington delegation would like to continue negotiations [with Iran], but he personally believes that trying to reach an agreement with the Iranian leadership at this time is “a waste of time” (as quoted by CNBC).

The market does not seem convinced by Trump’s latest statements that Iran tried to strike a deal following the recent U.S. attacks, Peter Cardillo of Spartan Capital noted in an interview with the WSJ: “The situation [in the Middle East] will likely keep [energy] prices high, although significant upside may be limited,” he added.

This article is being updated

This article was AI-translated and verified by a human editor