US stocks gained on Thursday as investors returned to semiconductor stocks following several days of heavy selling pressure. The S&P 500 rose 0.4%, the Nasdaq Composite added 0.5%, and the Dow Jones Industrial Average advanced roughly 250 points, or 0.5%. The recovery was driven by renewed interest in chipmakers after technology shares, particularly semiconductor companies, experienced significant profit-taking following the market's artificial intelligence-driven rally. Market sentiment improved as investors stepped back into the sector's biggest names, helping stabilize broader indexes.
Semiconductor Stocks Lead Recovery With 3% ETF Gain
The rebound was led by chipmakers that had experienced intense pressure during recent sessions. Micron Technology, Advanced Micro Devices, and Intel all moved higher, while the iShares Semiconductor ETF gained around 3%. Intel stood out among the group after receiving an upgrade from Bank of America, which lifted the stock by approximately 5%. The recovery follows a sharp correction in semiconductor shares, including a 10% decline in the chip ETF last Friday that sparked concerns about the AI-driven rally becoming overextended. Despite recent volatility, many investors continue to view artificial intelligence infrastructure spending as a long-term growth driver.
SpaceX IPO Draws $70 Billion in Retail Orders Ahead of Friday Debut
Market participants are preparing for the debut of SpaceX on Friday. The offering is expected to become the largest IPO in market history, with a valuation approaching $1.8 trillion. The SpaceX IPO has drawn more than $70 billion worth of retail orders alone. Some traders believe recent weakness in semiconductor stocks may partly reflect portfolio repositioning ahead of the offering, as investors raise cash to participate in the debut. The IPO is viewed as a major test of investor enthusiasm for AI-related growth themes and technology valuations. Shares of Oracle Corporation fell sharply after the company announced plans to raise an additional $20 billion through debt and equity offerings to fund its expanding artificial intelligence infrastructure investments.
Trump Threatens Iran Strikes Targeting Kharg Island Energy Infrastructure
President Donald Trump warned that the United States would strike Iran "very hard" and threatened to take control of key Iranian energy infrastructure, including Kharg Island, which handles the majority of the country's crude exports. The comments followed another round of military exchanges between the United States and Iran. Iran's Revolutionary Guard said it targeted US bases in the region overnight, while US forces carried out additional strikes against Iranian positions. Qatari-mediated talks between Iranian and US representatives failed to produce a breakthrough.
WTI Crude Trades Near $89 as Strait of Hormuz Tensions Persist
WTI crude oil traded near $89 per barrel as investors monitored the situation surrounding the Strait of Hormuz. Iran claimed the waterway had been closed, though US officials disputed the assertion. The continued uncertainty surrounding one of the world's most important oil shipping routes has helped keep crude prices elevated despite concerns about global economic growth.
Investors Rotate Into Healthcare and Financials Amid Mixed Inflation Data
Beyond technology, investors continued rotating into sectors viewed as more defensive or undervalued. According to market strategists, healthcare, biotechnology, financials, and energy have attracted increased interest as traders look for alternatives to the crowded AI trade. Producer price data released Thursday showed inflation pressures remain mixed. Headline producer inflation rose more than expected, while core inflation came in below forecasts.
FAQ
What caused US stocks to gain on Thursday?
US stocks gained on Thursday as investors returned to semiconductor stocks after several days of heavy selling pressure. The S&P 500 rose 0.4%, the Nasdaq Composite added 0.5%, and the Dow Jones Industrial Average advanced roughly 250 points, or 0.5%, driven by renewed interest in chipmakers.
How much has the SpaceX IPO raised in retail orders?
The SpaceX IPO, scheduled to debut on Friday, has drawn more than $70 billion worth of retail orders alone. The offering is expected to become the largest IPO in market history, with a valuation approaching $1.8 trillion.
What did President Trump say about Iran?
President Donald Trump warned that the United States would strike Iran "very hard" and threatened to take control of key Iranian energy infrastructure, including Kharg Island, which handles the majority of the country's crude exports. The comments followed military exchanges between the United States and Iran.
