U.S. stocks opened higher on Thursday, with the Nasdaq Composite outperforming as investors showed resilience to ongoing Middle East conflict. Technology and energy sectors led gains, supported by strong performance in major tech names and rising crude oil prices.
- Nasdaq Composite rose 1.2% at market open, leading major indices
- Apple (AAPL) gained 1.8% amid positive AI sector sentiment
- Brent crude (CL=F) rose 2.3% to $92.60 per barrel
- CBOE Volatility Index (^VIX) declined 4.1% to 16.7
- Defense stocks saw sustained gains on sustained spending outlook
- Market resilience continues despite ongoing Middle East conflict
The Nasdaq Composite surged 1.2% at the opening, outpacing the S&P 500 and Dow Jones Industrial Average, as tech stocks drove the market’s advance. Apple Inc. (AAPL) rose 1.8% following strong earnings sentiment and continued investor confidence in AI-driven growth. The rally extended into energy markets, with Brent crude futures (CL=F) climbing 2.3% to $92.60 per barrel, reflecting supply concerns amid regional instability. Despite escalating geopolitical tensions, equity markets displayed a risk-on posture, with the CBOE Volatility Index (^VIX) falling 4.1% to 16.7, signaling reduced fear in the options market. The divergence between geopolitical risk and market performance underscores a growing acceptance of elevated conflict as a persistent backdrop. Investors appear to be pricing in resilience from global supply chains and strong corporate earnings, particularly in high-growth sectors like semiconductors and cloud infrastructure. Defense-related stocks also saw modest gains, with Lockheed Martin and Raytheon Technologies trending upward, reflecting sustained defense spending expectations. Market participants are closely tracking developments in the Middle East, but current data suggests that short-term volatility has not disrupted broader confidence. The Nasdaq’s 1.2% opening gain marks its third consecutive day of positive movement, with large-cap tech stocks accounting for over 60% of the index’s rise. Energy and defense sectors remain key beneficiaries, with crude oil and defense equities posting double-digit percentage gains over the past week.