New York stock market rises, driven by tech stock rebound amid easing Middle East tensions

The three major New York stock indices opened higher on the 8th (local time) as military tensions in the Middle East eased somewhat and bargain buying flowed into semiconductor stocks that had recently plummeted.

As of 9:45 a.m. on this day, the Dow Jones 30 Industrial Average on the New York Stock Exchange stood at 51,018.07, up 151.29 points (0.30%) from the previous close. The Standard & Poor's (S&P) 500 index rose 55.84 points (0.76%) to 7,439.58, while the Nasdaq Composite Index recorded 26,021.36, up 311.93 points (1.21%). The direct background for the improvement in investor sentiment was the announcement by Iran and Israel that they would suspend military operations. Although concerns about escalation had grown following Israel's airstrike on Beirut, Iran's retaliatory missile launches in response, and additional attacks by the Houthis in Yemen, expectations for de-escalation were reflected in the market after U.S. President Donald Trump mentioned the possibility of both sides seeking an immediate ceasefire.

Technology stocks, particularly semiconductor stocks, showed a significant rebound given the sharp declines they had recently experienced. Micron, which had fallen more than 13% on the previous trading day, rose 6.79%, while Broadcom, which had dropped nearly 8% following its earnings announcement, also gained 1.48%. The Philadelphia Semiconductor Index, which reflects the overall trend of the semiconductor industry, rose 3.89%. Among individual stocks, Marvell Technology jumped 8.84% following news of its planned inclusion in the S&P 500, and Flex also rose 0.95%. Nvidia gained 1.71% on news of expanded cooperation with SK Hynix, and Corning rose 6.85% after announcing a multi-billion dollar long-term contract with Amazon. This is interpreted as a sign that increased investment in artificial intelligence data centers is spreading to related component and infrastructure companies.

However, market caution has not completely disappeared. Carly Cox, Chief Market Strategist at Riholtz Wealth Management, pointed out that the biggest burden on the stock market is the possibility that prices will remain high despite recovering employment conditions. In particular, the concern is that inflation could persist for a longer period if conflicts in the Middle East escalate again and drive up international oil prices. Indeed, at the same time, West Texas Intermediate (WTI) crude for July 2026 delivery rose 0.16% from the previous session to $90.70 per barrel. Growth stocks and overvalued technology stocks typically face pressure in an environment of high interest rates and inflation, but the fact that the market has recently moved differently from this traditional trend is also cited as a factor contributing to future volatility.

Some on Wall Street view this correction as a consolidation process to sustain the bull market. In a report released today, Morgan Stanley maintained its existing assessment that the recent correction was inevitable and a necessary step to maintain the bullish trend through the year-end, setting a target of 8,000 for the S&P 500. By sector, technology and energy showed strength, while telecommunications and real estate were weak. European stock markets showed mixed trends without a clear direction; while the EuroStoxx 50 rose 0.14%, the French CAC 40, the UK FTSE 100, and the German DAX indices all declined. It is highly likely that geopolitical risks, oil prices, inflation indicators, and investor sentiment toward semiconductor stocks will continue to intertwine to determine the direction of global stock markets.