US stock markets closed trading in positive territory as investors renewed interest in semiconductor companies ahead of major tech firms’ earnings releases. Market attention shifted from geopolitical tensions and tariff disputes to further developments in the artificial intelligence investment boom.
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Chip Companies Pulled Major Indices Higher
The Dow Jones index rose 0.74 percent to 52,224.64 points, the broader S&P 500 index gained 0.89 percent to 7,509.20 points, and the technology-focused Nasdaq strengthened by 1.29 percent to 52,837.21 points. The biggest support to the market came from semiconductor manufacturer stocks, which recovered from previous significant losses.
Investors are returning to chip stocks in anticipation of strong results and favorable outlooks from technology companies. However, analysts warn that rapid growth ahead of earnings releases may limit room for further gains, as stock prices already reflect very optimistic expectations. The semiconductor company index, despite recent weakness, is up approximately 75 percent since the beginning of the year.
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Markets Overlooked Tariffs and Higher Oil Prices, Dollar Continued to Rise
Among individual sectors of the S&P 500 index, information technology performed best, while consumer staples manufacturers recorded the weakest performance. Shares of 3M strengthened after improving its full-year profit outlook, and toy manufacturer Hasbro also performed well. Conversely, Danaher and Genuine Parts weakened after the companies downgraded their financial outlooks.
Investors were not significantly troubled by either the announcement of 50 percent tariffs on a wide range of imports from Canada or the rise in oil prices to five-week highs due to tensions in the Red Sea. The US dollar strengthened for the fourth consecutive session, with the dollar index rising 0.2 percent to 101.18 points. The euro weakened slightly against the dollar to 1.1401 USD, while the dollar rose against the Japanese yen to 163.22 JPY.
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Source: ČTK
