Tech Giants Boost US Stocks Amid Ongoing Middle East Tensions
The US stock market closed higher on Thursday as tech giants like Microsoft, Apple, and Meta led the rally. The S&P 500 rose 1.1%, while the Dow Jones Industrial Average gained 1.2%. Nvidia's announcement to buy AI platform Hugging Face for $13 billion also boosted its shares by 1.8%. However, oil prices declined slightly despite tensions escalating in the Middle East due to ongoing clashes between the US and Iran.
The recent rise in bond yields has eased, which helped stabilize the market. The yield on the 10-year Treasury dropped to 4.77%, while the 2-year Treasury yield slid to 4.34%. Federal Reserve Governor Christopher Waller's comments also contributed to the positive sentiment, as he hinted at possibly keeping interest rates unchanged if inflation cools down.
Despite this optimism, some companies faced losses due to disappointing quarterly results. Snowflake surged 16.6% after exceeding analysts' estimates, but Broadcom fell 2.7% despite beating expectations in its AI chip revenue forecast.