US stocks moved higher on Thursday as investors anticipate a stellar SpaceX‘s expected stock market debut on Friday. The IPO of Elon Musk-led company is anticipated to be the biggest listing in history. By 11:15 a.m. ET, the Dow Jones Industrial Average had gained 304.17 points, or 0.61%, to 50,222.95. The Nasdaq Composite rose 98.23 points, or 0.39%, to 25,267.73, while the S&P 500 added 20.93 points, or 0.29%, to 7,287.92.
Chip stocks rebound after recent selloff
A major reason for Thursday’s gains was a recovery in semiconductor stocks. Shares of Micron Technology, Advanced Micro Devices (AMD), and Intel rebounded, while the iShares Semiconductor ETF climbed 3%. The chip sector had been under pressure this week after suffering a sharp 10% decline on Friday, leading some investors to question whether the sector’s powerful rally had run out of steam.
Intel helped lift sentiment after Bank of America upgraded the stock from “underperform” to “buy.” Intel shares rose 4% following the upgrade.
“That’s (Trump’s warning) a pretty worrisome thought for the market but what we’re seeing here is a market that may have been grossly oversold over the past few days. And so that’s why we’re seeing some sort of a bump,” said Phil Blancato, chief market strategist at Osaic Wealth to Reuters.
SpaceX IPO excitement boosts technology sentiment
Investor enthusiasm ahead of SpaceX’s market debut also supported technology shares. Some traders believe recent weakness in semiconductor stocks may have been partly caused by investors selling existing positions to free up cash for the IPO.
SpaceX is expected to begin trading on Friday at a valuation of roughly $1.77 trillion, making it the largest IPO ever. Many investors see the company as a key beneficiary of the artificial intelligence infrastructure boom, helping renew hope about long-term growth in the technology sector. Oracle fell 11% after announcing plans to raise an additional $20 billion through equity and debt offerings to fund its artificial intelligence expansion plans.
Investors rotate into beaten-down sectors
Some market strategists said investors are increasingly looking beyond the technology sector after months of AI-driven gains. “I think what people are saying are, where can we go that kind of hedges that tech trade? What would be the antithesis of the momentum and the beta?” said Victoria Fernandez, chief market strategist at Crossmark Global Investments, on CNBC. “We’re seeing that rotation out of tech into some things that have been beaten down a little bit over the past months.”
Markets remain resilient
Stocks continued to rise even as geopolitical risks remained elevated. Oil prices moved higher earlier in the day after President Donald Trump posted on Truth Social that the United States would be attacking Iran “VERY HARD TONIGHT.”
Trump also wrote, “At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets.”
The comments followed additional “self-defense strikes” carried out by US Central Command forces against Iran late Wednesday, according to a post by CENTCOM on X. The military said the strikes were ordered by Trump.
Regardless of the tensions, investors appeared willing to maintain exposure to risk assets. “What we have right now is an innovation boom,” Naomi Fink, chief global strategist and chief economist at Amova Asset Management, told MarketWatch on Thursday. That’s partly why the market is exhibiting “immense risk tolerance,” despite elevated oil prices triggered by the Iran conflict leading to ongoing inflation pressures, she said.
Inflation data comes in hotter than expected
Economic data released Thursday showed wholesale inflation accelerated in May. According to the Bureau of Labor Statistics, producer prices increased 1.1% from the previous month and were up 6.5% compared with a year earlier. Fink said the stronger-than-expected producer-price data reflected the impact of higher energy prices stemming from the conflict in the Middle East. The report followed Wednesday’s consumer inflation data and reinforced concerns that inflationary pressures remain present in the US economy.
World Bank cuts global growth outlook
Meanwhile, the World Bank lowered its global growth forecast for 2026, citing risks from the ongoing Middle East conflict. The institution warned that global growth could slow to just 1.3% if disruptions to energy supplies worsen and trigger broader financial market stress. The S&P 500 recorded nine new 52-week highs and seven new lows, while the Nasdaq Composite posted 86 new highs and 86 new lows.
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