Wall Street Rises Again as Oil Prices Stabilize, AI and Employment Data Boost Confidence

On the 9th (local time), the New York stock market closed higher, reversing most of the prior day’s sharp decline. The S&P500 rose 0.8% to 7,543.64, the Dow gained 0.3%, and the Nasdaq jumped 1.3%. Despite concerns over renewed hostilities between the U.S. and Iran, Brent crude fell 2.2% to $76.30 per barrel, giving back some of the previous day’s surge and calming risk appetite.

On the economic data front, weekly initial jobless claims came in at 215,000, below the forecast of 220,000, reinforcing the view that the labor market is cooling gradually rather than plunging sharply. However, minutes from the June FOMC meeting released the previous day showed that Fed officials were deeply divided over the inflation trajectory yet placed more weight on “upside risks,” acting as a factor that constrains expectations for early policy easing.

By sector, semiconductor stocks led the rally as expectations for AI investment benefits were revived. Micron Technology surged 4.5% after highlighting AI memory demand and progress on a large-scale plant investment in New York State, driving the S&P500’s gains. In contrast, PepsiCo fell 3.3% as its earnings reflected a slowdown in North American food and beverage demand, limiting gains in consumer-related shares.

On the global front, despite uncertainty over a ceasefire in the Iran conflict, perceptions that a blockade of the Strait of Hormuz is unlikely in the near term spread, stabilizing both oil prices and U.S. Treasury yields. The 10-year yield dipped slightly from 4.56% to 4.54%, creating a favorable environment for equities. Investors view Iran-related geopolitical risks, inflation, and the mid-month kickoff of the second-quarter earnings season as the key variables that will determine the future direction of the U.S. stock market.