U.S. stocks traded modestly higher early Thursday as improving geopolitical sentiment and ongoing earnings strength supported risk appetite at the open. The Dow Jones Industrial Average rose about 130 points, or 0.27%, to 45,894, while the S&P 500 gained 0.13% to 7,032 and the Nasdaq Composite climbed 1.59% to 24,016
Investor sentiment was underpinned by renewed optimism surrounding potential diplomatic progress between the U.S. and Iran, a development that has helped stabilize global markets after weeks of volatility. Reports of possible negotiations and reduced tensions in the Middle East have eased concerns however energy supply disruptions remain a volatile factor driving investor sentiment.
The improved geopolitical backdrop comes as equities build on recent record highs, particularly in technology shares, which continued to lead early gains. The Nasdaq’s outperformance reflects sustained demand for growth stocks following a strong session Wednesday, where speculative and AI-linked names drove momentum higher, market reports show.
Early trading showed relatively steady price action, with equities opening firm and holding gains through the morning. There were no signs of broad-based selling pressure, and volatility remained contained, with the VIX hovering near 18. Bitcoin also moved higher, rising about 1.2% to just under $75,000, signaling continued risk-on positioning across asset classes.
Commodities provided additional context for the session’s tone. Oil prices rose roughly 1.3% to around $89 per barrel, reflecting ongoing supply uncertainty despite easing geopolitical risks, while gold gained 0.36% to $4,841, maintaining its role as a hedge amid lingering macro uncertainty.
