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Listen to this article in summarized format At 9:56 a.m. ET, the Dow Jones Industrial Average was up 246.01 points, or 0.47%, at 53,012.89, while the S&P 500 gained 8.22 points, or 0.11%, to 7,639.69. The Nasdaq Composite was down 14.92 points, or 0.06%, at 26,084.86. The latest exchange of fire between the United States and Iran, the biggest since July, has pushed geopolitical risks back to the centre of investors’ attention after several weeks of relative calm. The renewed tensions have also raised concerns that any wider regional conflict could put fresh pressure on energy prices and make it harder for policymakers to bring inflation under control. For now, however, the strength of the artificial intelligence trade is helping limit the impact on equities. Investors appear willing to look past a degree of macroeconomic uncertainty as companies tied to the AI boom continue to deliver strong growth expectations. "When it comes to AI, we're just at the precipice. We are at the beginning of what is a very significant revolution in the way technology and data is managed," said Thomas Kikis, head of markets, U.S. and the Americas, at Standard Chartered, according to Reuters. Individual stocks added to the support. Dell jumped 6.7% after raising its annual revenue and profit forecasts, while Brown-Forman gained 4.2% after the Jack Daniel’s maker beat estimates for first-quarter profit. The so-called Magnificent Seven stocks were mixed. Nvidia rose 1.2%, while Microsoft fell 0.5% and Tesla declined 1%. Still, higher Treasury yields remain a drag on equities. The 10-year Treasury yield fell 2 basis points on Wednesday after rising earlier in the session, but remained close to its highest level since January 2024. Higher yields can make government bonds more attractive relative to stocks, particularly for investors sitting on substantial equity gains. "Investors are very concerned about the upward trend in global bond yields and as a result, are lightening their exposure to equities where they have substantial profits," said Sam Stovall, chief investment strategist at CFRA Research, according to Reuters. The latest geopolitical developments could further complicate the interest-rate outlook. Traders have sharply raised their expectations for a September rate hike over the past week after Federal Reserve Chair Kevin Warsh said controlling price pressures was the central bank’s main focus. Markets were pricing in a 66.2% chance of a September rate hike, compared with about 37% a week earlier, according to the CME FedWatch tool. Investors are also entering a seasonally weaker period for stocks. The S&P 500 has declined 0.7% on average in September since 1926, making it the weakest month for the benchmark and the only one with a negative average return, according to Fisher Investments, citing data from Finaeon. With inflation data sending mixed signals, Friday’s jobs report will offer investors another key read on the US economy and could help determine whether the recent resilience in equities can hold as geopolitical and rate risks build. (Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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