U.S. stocks traded slightly higher on Thursday as investors looked past geopolitical tensions in the Middle East and instead focused on AI corporate earnings and upcoming technology catalysts. The Nasdaq led the major indexes higher, supported by continued enthusiasm surrounding AI infrastructure and semiconductor demand, while the S&P 500 and Dow Jones Industrial Average posted smaller gains.
Markets showed resilience despite another escalation in U.S.-Iran hostilities that lifted oil prices and reignited concerns about global energy supplies. Investors also digested fresh economic data, including weekly jobless claims, while positioning ahead of SK Hynix's highly anticipated U.S. market debut, which is expected to serve as another key test of investor appetite for AI-related investments.
Market Movers:
- Ampco-Pittsburgh (AP) +18%: Shares surged after the company reported first-half customer orders climbed 32% year over year to $268 million, driven by strength across both its engineered products and air handling businesses. Management also announced Buffalo Air Handling secured the largest air handling equipment order in the company's history, reinforcing optimism about industrial demand.
- Aehr Test Systems (AEHR) +18%: Shares jumped after the semiconductor equipment maker received a follow-on order from its largest silicon photonics customer for its FOX-XP Wafer-Level Burn-In System. The new system will support high-volume production of AI networking components used in hyperscale data centers and advanced AI processor packaging, highlighting continued investment in AI infrastructure.
- BridgeBio Pharma (BBIO) +18%, Alnylam Pharmaceuticals (ALNY) +12%: Both stocks rallied after AstraZeneca and Ionis Pharmaceuticals reported disappointing Phase 3 trial results for Wainua in ATTR-CM patients. The setback is expected to strengthen the competitive positions of BridgeBio's Attruby and Alnylam's Amvuttra, both of which are already approved for treating the condition.
- MARA Holdings (MARA) +10%: Shares climbed after the Bitcoin miner announced plans to acquire a more than 1,200-acre powered site in Texas capable of supporting up to 2 gigawatts of capacity by 2028. The project will support both high-performance computing and Bitcoin mining, significantly expanding the company's long-term digital infrastructure ambitions.
- Rackspace Technology (RXT) -22%: Shares plunged after the cloud services provider lowered its full-year revenue and EBITDA guidance while announcing plans for a $250 million at-the-market equity offering. Investors focused on slowing enterprise AI deployments and the potential dilution from the planned share issuance despite management reaffirming its long-term AI strategy.
- Ionis Pharmaceuticals (IONS) -18%, AstraZeneca (AZN) -8%: Shares of both companies fell after their Phase 3 CARDIO-TTRansform study evaluating Wainua failed to meet its primary endpoint in patients with transthyretin-mediated amyloid cardiomyopathy. The disappointing outcome raises questions about the therapy's commercial prospects in an increasingly competitive market.
- Paramount Skydance (PSKY) -8%: Shares declined following reports that a multistate lawsuit seeking to block the company's proposed $110 billion acquisition of Warner Bros. Discovery could be filed as early as next week. The reports added fresh legal and regulatory uncertainty surrounding one of the entertainment industry's largest pending mergers.
- MDA Space (MDA) -7%: Shares fell after the company announced a C$712 million bought-deal equity offering to help finance its acquisition of a controlling stake in French satellite technology company CLS. While management expects the transaction to boost recurring revenue and earnings, investors reacted negatively to the dilutive impact of the financing.
AI Optimism Continues to Drive Market Leadership
AI remained one of the market's strongest themes, helping investors look beyond geopolitical uncertainty. Enthusiasm surrounding SK Hynix's upcoming Nasdaq debut underscored continued confidence in the AI supply chain, with demand for the memory chipmaker's U.S. listing reportedly far exceeding available shares.
Investors also continued to evaluate how AI investment is reshaping corporate spending. While demand for AI infrastructure remains robust, some economists are beginning to question whether the technology boom may also contribute to higher inflation by increasing demand for electricity, software, advanced hardware, and critical components.
Middle East Tensions Keep Energy Markets on Edge
Geopolitical developments remained a key focus after renewed U.S. and Iranian military actions threatened to further disrupt shipping through the Strait of Hormuz. Oil prices remained elevated as traders monitored the risk of additional supply disruptions, though equities largely shrugged off the latest escalation. Despite shipping traffic slowing considerably, analysts noted that global energy markets have adapted better than during previous disruptions. Still, prolonged instability could keep upward pressure on energy prices and complicate the inflation outlook heading into the second half of the year.
Economic Data Paints a Mixed Picture
Fresh economic reports offered additional insight into the health of the U.S. economy. Weekly jobless claims remained relatively stable, suggesting the labor market continues to hold up despite slower hiring in recent months. Meanwhile, housing data pointed to continued affordability challenges as existing home sales declined in June amid elevated mortgage rates and high home prices. Investors continue to balance signs of slowing economic activity against the possibility that persistent inflation could keep the Federal Reserve cautious on future monetary policy.
Looking Ahead
Investors now turn their attention to SK Hynix's Nasdaq debut, which could provide another important gauge of appetite for AI-related investments following recent volatility across the semiconductor sector. Upcoming earnings reports and additional economic data will also help determine whether technology stocks can maintain their leadership. At the same time, geopolitical developments in the Middle East remain a significant wildcard. With energy markets still sensitive to supply disruptions and inflation risks lingering, investors are likely to remain focused on both macroeconomic data and global headlines as they assess the market's direction in the weeks ahead.