Dow rises 390 pts as US stocks gain despite oil, Fed and Iran concerns

US stocks opened higher on Thursday even as investors assessed mixed corporate earnings, rising oil prices and renewed tensions between the United States and Iran.

The Dow Jones Industrial Average climbed 392 points. The S&P 500 gained 0.53% while the Nasdaq Composite was up 0.63%.

Investors remained focused on developments in the Middle East as continued military exchanges between the US and Iran raised concerns about energy supplies and inflation.

Brent crude futures rose 1.22% Thursday, extending their gains to a fourth consecutive session.

Oil prices keep inflation concerns in focus

Higher crude prices have added to concerns that prolonged conflict in the Middle East could intensify inflation pressures and increase the likelihood of higher interest rates.

West Texas Intermediate crude futures traded about 1% higher near $92 a barrel, while Brent futures advanced to above $96.

Rising energy prices have recently contributed to upward pressure on Treasury yields as investors assess the potential impact on inflation.

The market is also watching developments around the Federal Reserve.

Traders have sharply increased expectations for a September rate hike over the past week, although those expectations eased Thursday following comments from Fed Governor Christopher Waller indicating support for keeping rates unchanged if upcoming inflation data does not surprise.

Fed funds futures showed a 54.6% probability of a rate increase at the September meeting, down from 63.2% a day earlier.

The benchmark 10-year Treasury yield was around 4.75% Thursday after briefly reaching 4.818% Wednesday, its highest level since November 2023.

The 2-year Treasury yield also reached its highest level since January 2025 during Wednesday's session.

Broadcom slides while Snowflake surges

Corporate earnings provided mixed signals for investors. Broadcom shares fell about 5.6% in trading after the semiconductor company issued a fourth-quarter revenue forecast that fell short of Wall Street expectations.

The results highlighted the high expectations surrounding companies at the center of the artificial intelligence investment cycle.

Snowflake, however, offered a stronger earnings signal. Its shares surged more than 21% in trading after the software company reported better-than-expected second-quarter earnings and revenue and issued strong guidance.

Other software stocks also moved higher, with ServiceNow gaining 6.11%, while Salesforce and Adobe advanced about 3.14% and 3.7%, respectively.

The contrasting reactions to Broadcom and Snowflake added to the uneven tone across technology stocks as investors continued to assess whether AI-related spending can support elevated expectations.

Jobs data next as markets weigh September risks

Investors are now turning toward Friday's US jobs report for further clues about the economy and the Federal Reserve's policy path.

However, expectations for the data are being tempered by the central bank's continued focus on inflation.

A prolonged Middle East conflict could further complicate the outlook if higher energy prices add to inflationary pressure.

The Japanese yen also strengthened sharply against the US dollar Thursday, rising more than 1% to around 156.1 yen per dollar.

The yen's advance contributed to a broader decline in global bond yields.

Wall Street entered Thursday's session after the major US indexes ended three-day losing streaks in the previous session.

Despite that recovery, September has historically been a weak month for equities. Nine of the 40 largest one-day declines in S&P 500 history occurred during September.