US stocks were trading slightly higher in midday action on Friday, July 11, Beijing time. The Nasdaq and S&P 500 indexes were on track to post weekly gains. Market participants continued to monitor developments in the Middle East.
The Dow Jones Industrial Average rose 87.93 points, or 0.17%, to 52,575.34. The Nasdaq Composite gained 18.72 points, or 0.07%, to 26,225.61. The S&P 500 index advanced 12.09 points, or 0.16%, to 7,555.73.
NVIDIA (NVDA) shares climbed 3.2%, pushing the company's market capitalization back above the $5 trillion mark.
The S&P 500 is poised for a 0.8% weekly gain, while the Nasdaq Composite is set to close the week up 1.5%. However, the Dow Jones Industrial Average is on pace for a 0.8% weekly decline.
Markets remained focused on the latest developments between the US and Iran. The US President stated on Thursday that Iran had contacted him seeking a deal. Officials from Qatar and Pakistan said the two nations are attempting to bring Washington and Tehran back to the negotiating table.
A government official indicated that "technical talks" would continue between the two sides despite recent airstrikes. Media reports on Thursday stated the US is committed to finding a solution to the conflict in the Middle East. Earlier this week, the President had declared that a ceasefire between the US and Iran was over.
Clark Bellin, President and Chief Investment Officer of Bellwether Wealth, commented, "The muted reaction in equity markets this week to the renewed escalation of tensions with Iran is a strong sign that markets are ignoring geopolitical tensions."
Chip stocks showed weakness. South Korean chipmaker SK Hynix, whose shares have surged this year on strong memory chip demand, priced its American Depositary Receipts at $149 each. Some traders expressed concern that this new issuance could compete for investor funds with US memory chip stocks like Micron Technology (MU).
Micron Technology shares fell approximately 3%. Marvell Technology and Lam Research both declined more than 1%. Intel dropped nearly 3%. Broadcom also traded in negative territory. The iShares Semiconductor ETF and the VanEck Semiconductor ETF fell 1.2% and 0.8%, respectively.
However, Meta Platforms, Inc. (META) was a bright spot in the tech sector. Its shares rose 6% after Bank of America maintained a Buy rating on the stock. The firm suggested that an internal memo indicated Meta might be improving its AI cost structure.
Positive momentum from chipmakers helped lift the major US indices, with many investors still hopeful that robust earnings growth can help the market broaden its advance beyond tech stocks and continue its upward trajectory.
This sentiment spread to Asia-Pacific markets on Friday, with South Korean equities leading regional gains. The KOSPI index rose 2.5%, and Japan's Nikkei 225 index closed 1.2% higher. China's mainland CSI 300 index closed down 1.96%, weighed down by technology and industrial sectors.
In other markets, the pan-European Stoxx 600 index was last up 0.1%.
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