The US stock market, Wall Street, recorded significant gains in trading on Thursday (9/7). Investor buying of technology stocks was the main catalyst that brought the S&P 500, Nasdaq, and Dow Jones Industrial Average indexes collectively into the green zone, despite global sentiment being overshadowed by geopolitical tensions following Iran's retaliatory strikes against US military targets in Kuwait, Qatar, and Bahrain.
The Nasdaq index led the gains with a 1.30 percent jump, followed by the S&P 500 at 0.81 percent and the Dow Jones at 0.27 percent. The information technology sector was the main driver, fueled by market enthusiasm for the potential of artificial intelligence (AI). Micron Technology shares posted an impressive performance with a 4.5 percent rise after announcing a massive investment commitment of USD 250 billion to meet future chip demand.
Positive sentiment also flowed to Meta Platforms following the company's plans to produce its own AI chips. However, volatility still looms over the market. Baird investment strategy analyst Ross Mayfield noted that the rally driven by AI optimism remains highly dependent on oil price stability and the future direction of Fed interest rate policy.
On the macroeconomic side, the US labor market showed resilience with a decline in jobless claims. However, investor focus has now shifted to the outlook for interest rates following Federal Reserve meeting minutes that indicated debate among officials over potential rate hikes. Based on CME FedWatch data, the market predicts a chance of a 25 basis point hike in December.
On the other side, not all listed companies posted positive results. Costco Wholesale shares weakened 4.2 percent after a disappointing monthly sales report, while PepsiCo fell 3.3 percent despite its quarterly profit beating expectations. Overall, market performance remained solid with advancing stocks outnumbering declining ones, although trading volume was lighter than the average of the previous 20 sessions.
