New York stocks closed higher across the three major indexes as leading corporations reported solid results and semiconductor shares rebounded despite rising international oil prices.
On the 21st (local time) in New York, the Dow Jones Industrial Average finished at 52,224.64, up 385.38 points (0.74%) from the previous session. The Standard & Poor's (S&P) 500 rose 65.92 points (0.89%) to 7,509.20, and the tech-heavy Nasdaq composite closed at 25,837.21, up 329.13 points (1.29%).
On the day, a second straight session of bargain hunting flowed into artificial intelligence (AI) and semiconductor names, lifting the indexes.
Micron Technology, which had fallen more than 13% last week, surged 12.2%, while major tech stocks such as Nvidia (2.0%) and Intel (5.9%) were strong. SK hynix American depositary receipts (ADR) also jumped 13.8%.
Corporations also posted second-quarter earnings surprises. 3M rose 7.3% on strong results and an upward revision to its full-year profit outlook, and General Motors (GM) also gained 4.9% after reporting results that topped market expectations on the back of solid North American demand.
However, international oil prices extended gains on geopolitical tensions in the Middle East, hitting the highest level in about five weeks. September Brent crude and August West Texas Intermediate (WTI) futures settled at $91.01 and $84.91 per barrel, up 2.01% and 2.02% from the previous session, respectively.
By the close, Brent was at a record high since June 10, and WTI since June 11.
Rising oil prices stoked inflation fears, pushing up U.S. Government Bonds yields.
The 10-year U.S. Government Bonds yield rose 4 basis points (1 bp = 0.01 percentage point) to 4.63% from the previous session, far above 3.97% before the U.S.-Iran war broke out.
The dollar index, which reflects the value of the dollar against six major currencies, was 101.188 at 4:40 p.m., up 0.226 from the previous session.
With the dollar stronger, the yen/dollar rate was 163.205 yen per dollar at the same time, up 0.52% from the previous session. It was the first time the yen/dollar rate topped 163 since December 1986. The won/dollar rate stood at 1,482.0 won.
The market said solid results from corporations are supporting stocks despite the drag from oil prices. Keith Parker of UBS analyzed, "As the AI upcycle continues, profit growth led by tech stocks is underpinning further upside potential."