Key Highlights

  • Indices Up to 0.5%: The S&P 500, Dow Jones, and Nasdaq Composite each rose as much as 0.5%, recovering from one-month lows driven by strength in the technology sector.
  • Trump Reverses Course on Iran: US President Trump stated the US will resume strikes against Iran and target the energy hub of Kharg Island, reversing de-escalatory comments made the previous day.
  • May PPI Accelerates: A fresh PPI print for May pointed to accelerating prices, reinforcing market expectations that the Federal Reserve will raise interest rates this year.
  • Nvidia Gains 1%: Nvidia (NASDAQ: NVDA) rose 1% as AI infrastructure companies maintained strong momentum ahead of the SpaceX IPO.
  • Intel Surges 9%: Intel (NASDAQ: INTC) jumped 9% after Bank of America upgraded the stock, citing soaring CPU orders.

 

US equity indices staged a modest rebound on Thursday, recovering from one-month lows as the technology sector provided a critical buffer against a deteriorating macro backdrop. The S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite each gained up to 0.5% on the session.

The market's resilience came despite a fresh escalation in geopolitical risk. US President Donald Trump reversed de-escalatory remarks made a day earlier, stating that the United States would resume military strikes against Iran and would capture the Iranian energy hub of Kharg Island "at some point." The statement introduced renewed uncertainty into energy markets and investor sentiment.

Compounding the risk environment, a new Producer Price Index (PPI) print for May pointed to accelerating prices, directly consolidating the impact of the Iran conflict on price growth. The data aligned with recent market bets that the Federal Reserve will raise interest rates this year, raising the cost of capital and adding pressure to rate-sensitive equities.

Despite these headwinds, AI infrastructure companies carried strong upward momentum through the session. Nvidia (NASDAQ: NVDA) gained 1%, supported by continued investor conviction in the artificial intelligence capital expenditure cycle. The upcoming SpaceX IPO, scheduled for Friday, further underscored the degree to which hyperscalers continue to invest in compute capacity, reinforcing the investment case for the sector.

Intel Corporation (NASDAQ: INTC) was among the strongest individual performers on the day, surging 9% after Bank of America upgraded the stock. The bank cited soaring CPU orders as the basis for its more constructive view, marking a notable shift in analyst sentiment toward Intel after an extended period of underperformance.

On the downside, Oracle Corporation (NYSE: ORCL) slumped 12% after the company announced plans to take on additional debt to finance data center expansion despite reporting flat sales. Microsoft Corporation (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META) also declined, each falling over 1% on the session.