Stocks Rise as Oil Prices Fall Amid Escalating US-Iran Tensions
Despite escalating tensions between the US and Iran in the Middle East, global stock markets saw gains on Thursday. The Dow Jones Industrial Average rose by 0.27%, while the S&P 500 increased by 0.81%. The tech-heavy Nasdaq Composite outperformed its peers with a climb of 1.30%.
The tech sector's strong showing was led by semiconductor stocks, particularly Micron and Sandisk, which saw their shares soar. The VanEck Semiconductor ETF gained 3% on the day.
However, oil prices took a hit despite the rising tensions in the region. Brent crude dropped by 2.50% to $76.07 per barrel at 4:05 p.m. ET, while West Texas Intermediate fell by 2.29% to $71.84 per barrel at the same time.
Analysts point to decreased traffic through the Hormuz Strait as a contributing factor to the drop in oil prices. On Wednesday, only 13 ships crossed the waterway, compared to an average of 33 per day over the previous week, according to data from Kpler.