US stocks edge higher as AI optimism outweighs West Asia tensions

US stocks traded modestly higher on Thursday, July 9, as investors looked past escalating tensions between the United States and Iran, shifting their focus to AI-related stocks ahead of South Korean chipmaker SK Hynix's US trading debut.

Semiconductor shares led gains, helping the technology-heavy Nasdaq outperform the broader market.

The Nasdaq Composite rose about 0.7%, while the S&P 500 gained 0.4%. The Dow Jones Industrial Average traded around the flatline after Wall Street ended Wednesday's session on a mixed note.

Markets continued to monitor developments in West Asia after the US launched airstrikes on around 90 Iranian targets, prompting retaliatory strikes by Iran on targets in US-allied countries in the region. Despite the renewed conflict and higher oil prices, investor sentiment remained supported by expectations that AI-related companies, particularly semiconductor makers, will continue to drive market gains.

Nasdaq futures rise on AI optimism as investors look past US-Iran tensions

US stock futures traded mixed on Thursday, July 9, as investors looked past renewed geopolitical tensions in West Asia and shifted their focus to AI-related stocks ahead of South Korean chipmaker SK Hynix's highly anticipated US market debut.

Futures tied to the Nasdaq-100 rose 0.8%, supported by gains in semiconductor stocks, while S&P 500 futures advanced 0.2%. Dow Jones Industrial Average futures were little changed to 0.1% lower after Wall Street ended Wednesday's session on a mixed note.

The gains in technology shares came despite heightened tensions between the United States and Iran.

The US launched fresh strikes on Iran in response to attacks by Tehran on commercial shipping in and around the Strait of Hormuz, according to US Central Command.

Oil prices were little changed on Thursday after briefly surging in response to fresh US strikes on Iran, which reignited concerns over potential supply disruptions in West Asia. However, prices steadied as investors continued to assess the geopolitical situation and its impact on global energy supplies.

Brent crude futures, the global benchmark, rose 53 cents to $78.55 a barrel after settling 5.4% higher in the previous session, marking their biggest one-day gain since May 4. US West Texas Intermediate (WTI) crude futures also edged higher, gaining 35 cents to trade at $73.87 per barrel.

Earlier this week, Trump had indicated that he was no longer interested in negotiations and declared that the ceasefire between Washington and Tehran was "over" following another wave of attacks in the region.

Wall Street closed mixed on Wednesday, with the Dow Jones Industrial Average falling as investors reacted to the renewed conflict, while the S&P 500 edged lower. The Nasdaq, however, outperformed, supported by a rebound in semiconductor stocks.

Attention is now turning to the AI sector ahead of SK Hynix's Nasdaq debut on Friday. The South Korean memory chipmaker is expected to price its US listing later on Thursday, with demand reportedly exceeding the shares available by seven times.