Tech Stocks Boost US Market as Oil Prices Stabilize Amid Iran Conflict
US stocks closed higher on Thursday as rising technology companies boosted the market and eased earlier losses. The S&P 500 rose 1.1%, while the Dow Jones Industrial Average gained 1.2% and the Nasdaq composite increased by 1.4%. Big tech and communication services stocks, which have high valuations, drove the rally with Microsoft up 2.7% and Meta climbing 3%.
The US war with Iran intensified, causing oil prices to initially rise but then stabilize. Brent crude fell 0.1% to $95.52 per barrel after rising in the early going, while US crude edged up 0.3% to $91.30 a barrel. The increased oil prices have added to inflationary pressures and worsened the bond-market sell-off.
Bond yields showed signs of stabilizing with the yield on the 10-year Treasury dropping to 4.77% from 4.79% late Wednesday, while the yield on the 2-year Treasury fell to 4.34% from 4.39%. Federal Reserve Governor Christopher Waller's comments hinted that the Fed may not raise interest rates at its next policy meeting if inflation data cools down.