US stocks opened with mixed performance on Thursday evening Beijing time, with the Nasdaq Composite advancing, driven by gains in the semiconductor sector. Traders continued to assess the escalating tensions between the United States and Iran. Former President Trump stated that Iran had called seeking a deal following the US strikes, adding that it was unclear whether a full-scale war had resumed.
The Dow Jones Industrial Average opened down 98.95 points, or 0.19%, at 52,249.44. The S&P 500 index rose 8.89 points, or 0.12%, to 7,491.60. The Nasdaq Composite gained 53.27 points, or 0.21%, reaching 25,923.92.
The VanEck Semiconductor ETF (SMH) climbed nearly 3%, led by a 5% surge in Micron Technology. SanDisk also rose more than 4%.
European markets also saw a rebound on Thursday as investors monitored renewed tensions in the Middle East. The pan-European Stoxx 600 index edged up 0.1%, with mixed performance across regional markets and sectors.
The US Central Command stated Wednesday afternoon that the US had initiated a new round of strikes against Iran in response to its attacks on commercial shipping in and around the Strait of Hormuz. The command later indicated another round of strikes had been completed. However, oil futures prices stabilized after former President Trump claimed Iran had called seeking an agreement.
Previously, on Wednesday, Trump indicated he might no longer be interested in negotiating a deal with Iran. This followed his earlier statement that a ceasefire between the US and Tehran was "over" after another round of attacks in the Middle East.
Speaking Wednesday evening, Trump said he did not know if Washington and Iran were heading back into a full-scale war, but he told reporters that Iran "very much" wanted a deal to stop the escalating hostilities in the region.
Trump was returning to Washington, D.C., from the UK. After departing RAF Mildenhall, he told reporters aboard Air Force One that the US military had "just hit them very hard."
"I said we would hit them 20 to 1—every time they hit us, we hit them 20 times harder, and we did that last night," he said. "They did a little bit today, but that was really in retaliation for last night... When they hit, we hit much harder."
When asked if the US and Iran were returning to a full-scale military conflict, Trump replied, "I don't know." He then added that if war resumed, the US would "win very quickly."
"We have many ways to win, but we have already won militarily," he said. "They don't have much left, and they very much want a deal. They just called. They very much want a deal. I just don't know if they're worthy of a deal. I don't know if they would abide by a deal. That's the problem."
Mason Mendez, a global real assets analyst at Wells Fargo Investment Institute, commented, "Any assumption of a swift normalization of exports from the Persian Gulf is undoubtedly being challenged. Given already low global reserves and inventories, and a shrinking supply buffer, any further escalation could reinforce the geopolitical risk premium in oil prices—even if negotiations eventually resume."
Influenced by the renewed US-Iran tensions, the Dow Jones Industrial Average fell sharply on Wednesday. The S&P 500 also closed slightly lower, while the Nasdaq Composite advanced, buoyed by a rebound in the semiconductor sector.
Mendez added, "These new geopolitical risks may intensify risk-off sentiment in the near term. However, trends such as strong earnings momentum and the ongoing AI advantage are likely to continue driving the S&P 500 toward our year-end target range of 7,800 to 8,000."
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