NEW YORK: Wall Street’s major indexes inched higher in choppy trading on Thursday, as technology stocks steadied after a recent selloff, while investors kept a close watch on developments around the Middle East conflict.
Chipmakers bounced back after Wednesday’s selloff sent major Wall Street indexes down more than 1 percent and technology stocks into correction territory, a 10 percent drop from their record close.
Intel soared 6 percent, while Nvidia and Micron Technology were up 0.5 percent and 3.2 percent, respectively. The S&P 500 technology index rose 0.7 percent, while the Philadelphia SE Semiconductor index advanced 3.5 percent.
Stocks steadied even as US President Donald Trump warned Washington would hit Iran “very hard tonight” and soon take control of the Middle Eastern country’s oil and gas infrastructure and markets. Oil prices were nearly flat.
“That’s (Trump’s warning) a pretty worrisome thought for the market but what we’re seeing here is a market that may have been grossly oversold over the past few days. And so that’s why we’re seeing some sort of a bump,” said Phil Blancato, chief market strategist at Osaic Wealth.
At 11:53 a.m. ET, the Dow Jones Industrial Average rose 268.31 points, or 0.54 percent, to 50,187.09, the S&P 500 gained 18.57 points, or 0.26 percent, to 7,285.56 and the Nasdaq Composite gained 103.26 points, or 0.41 percent, to 25,272.76.
The S&P 500 has dropped about 4 percent since hitting a record closing high in early June as investors grapple with concerns about stretched tech valuations and tighter monetary policy, with the Middle East conflict stoking inflationary pressures.
Data showed US producer prices increased more than expected in May, leading to the largest annual gain in over three years.
Separately, the number of Americans filing claims for unemployment benefits increased marginally last week.
The Federal Reserve is widely expected to hold interest rates steady at its policy meeting next week, with investors pricing in at least one 25 basis point rate hike by the end of the year.
“Inflation is a bigger concern for markets right now than growth. As a result, any near-term correction is more likely to be driven by inflationary pressures than by a deterioration in economic activity,” said Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research.
The highly anticipated Friday market debut of Elon Musk’s SpaceX, set to be valued at USD1.75 trillion, could also test the rally this year that has repeatedly lifted stocks to record levels.