US stocks climbed on Thursday as investors prioritized artificial intelligence prospects and the upcoming SK Hynix Nasdaq debut over escalating geopolitical tensions between the United States and Iran.

Key Points

• The Nasdaq Composite rose 1.3%, while the S&P 500 gained 0.8% and the Dow Jones Industrial Average increased by 0.2%.
• South Korean memory chip manufacturer SK Hynix is set for its Nasdaq debut on Friday, with IPO demand currently seven times the available share supply.
• US military forces launched airstrikes on 90 Iranian targets, prompting retaliatory strikes from Iran against US-allied nations in the Middle East.
• Oil prices declined as markets adjusted to the ongoing instability in the Middle East and its potential impact on global energy supplies.
• Pepsi reported revenue that exceeded expectations, though the company noted that American consumers are increasingly tightening budgets due to broader economic concerns.

Why it Matters

The market's resilience suggests that investor enthusiasm for artificial intelligence remains a primary driver of equity valuations despite significant geopolitical volatility. This trend highlights a shift in focus toward long-term tech growth as traders look past immediate macroeconomic and regional security risks.