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S&P 500, Nasdaq Gain on Chip Rally as Dow Slips Amid US-Iran Tensions
U.S. stock markets opened mixed on Thursday, with the S&P 500 and Nasdaq Composite posting gains on the back of a strong rally in semiconductor stocks. However, the Dow Jones Industrial Average declined as investors weighed renewed geopolitical tensions between the United States and Iran.
Market Snapshot at the Open
According to a Reuters report, the major U.S. indices showed a divergent performance at the start of the trading session:
- The Dow Jones Industrial Average fell 98.9 points, or 0.19%, to 52,249.44.
- The S&P 500 rose 8.9 points, or 0.12%, to 7,491.6.
- The Nasdaq Composite gained 47.7 points, or 0.18%, to 25,918.31.
Chip Stocks Buoy Tech Sector
The primary driver for the gains in the Nasdaq and S&P 500 was a significant rally in the semiconductor sector. Strength in chipmaker stocks provided a powerful tailwind for the tech-heavy Nasdaq, helping it outperform the other major indices.
AdThis sector-specific optimism indicates investor confidence in technology company fundamentals, even as broader market sentiment remains cautious.
Geopolitical Jitters Weigh on Sentiment
Offsetting the gains in technology were renewed concerns over the U.S.-Iran conflict. Reports of a fresh exchange of attacks have heightened geopolitical uncertainty, prompting a more risk-averse stance among some market participants.
This caution was most evident in the Dow, which is composed of more traditional, multinational blue-chip companies often seen as more sensitive to global political and economic instability. The dynamic creates a volatile trading environment as investors balance sector-specific opportunities against macroeconomic risks.