Global stocks inched higher on Thursday as investors balanced the escalating tensions in the Middle East against the continued growth in technology shares and resilient economic data.

Oil prices fluctuated in response to Iranian armed forces launching fresh attacks on U.S. military infrastructure in neighboring Qatar, Kuwait, and Bahrain. Brent crude futures dropped 0.62% to nearly $77.54 after reaching almost $79 a barrel earlier in the day. U.S. crude prices also declined, falling 0.92% to $72.84 a barrel.

Wall Street Opens on an Optimistic Note

On the other hand, Wall Street opened the day with a positive note, with the Dow Jones Industrial Average edging up 0.16% in early trading to 52,433.50. The S&P 500 rose 0.41% to 7,513.49, while the Nasdaq Composite jumped 0.62% to 26,030.46. MSCI’s gauge of global stocks across the world rose 0.47%.

HSBC’s Chief Multi-Asset Strategist, Max Kettner, noted that bond markets remain highly sensitive to the Middle East tensions due to the potential implications for inflation and global interest rates. He further stated that the rates market is closely following oil prices, which has been evident over the past few days.

Technology Shares Drive Global Sentiment

The pan-European STOXX 600 index remained up 0.7% with tech stocks leading the charge, increasing by 2.6%. This uptrend was driven by a report that China could allow domestic AI firms limited access to AI leader Nvidia’s H200 chips and reports that SK Hynix’s $28 billion U.S. share listing was more than seven times oversubscribed.

The offering from the South Korean chipmaker will finance new factories and equipment to meet the surging demand for AI chips. This move is set to be the world’s second-biggest share sale after SpaceX’s record-breaking $85.7 billion IPO last month.

Muted Currency Markets and Resilient Labor Market

Currency markets were relatively muted, with the dollar barely moving, the yen stuck near a 40-year low, and the euro, sterling, and most other European currencies little changed on the day. The number of Americans filing claims for unemployment benefits fell last week, suggesting that the labor market remains stable despite a slowdown in job growth in June.

Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 215,000 for the week ended July 4. Economists polled by Reuters had forecast 218,000 claims for the latest week.

Gold edged up 1.41% to $4,133.62 an ounce as oil prices eased.