STOCKS | Nasdaq Jumps 1.3% as Micron Rally Lifts Chip Stocks Despite Middle East Fears

U.S. stocks closed higher on Thursday, led by a sharp rise in the Nasdaq as Micron Technology sparked a rally in chip stocks despite concerns that renewed U.S. and Iranian attacks could prolong the Middle East conflict and add to inflation, according to RTHK. Micron jumped 4.5% after outlining plans to invest more than $250 billion in the U.S. through 2035 to meet demand for memory chips tied to the artificial intelligence boom. Applied Materials rose 3.2% and Sandisk surged 7.6%. Tehran said it hit U.S. military targets in Kuwait, Qatar and Bahrain following U.S. strikes against Iran on Wednesday. Ross Mayfield, an investment strategy analyst at Baird in Louisville, Kentucky, said the AI bull market remains intact but could be challenged if oil prices and interest rates do not stay anchored amid the Middle East flare-up. Meta Platforms rose after Reuters reported the company plans to manufacture AI chips starting in September. The S&P 500 gained 0.8% to 7,543, the Nasdaq rose 1.3% to 26,206, and the Dow Jones Industrial Average added 0.3% to 52,487. With quarterly reporting season set to begin, analysts on average expect S&P 500 earnings to rise 24% year-over-year, with technology companies accounting for much of the increase, according to LSEG.