Tech Sector Drives Wall Street Higher as AI Momentum Counters Bond Yield Pressure

Wall Street opened firmer on Thursday, buoyed by strength in artificial-intelligence stocks, even as pressure from rising bond yields continued to roil financial markets globally.

The S&P 500 climbed 0.3 per cent, aiming to snap a three-day losing streak. The Dow Jones Industrial Average advanced 211 points, or 0.4 per cent, by 9:35 a.m. Eastern time, while the Nasdaq Composite rose 0.5 per cent.

Technology shares led the advance following Micron Technology’s better-than-expected quarterly profit. The memory-chip maker noted strengthening growth and provided revenue and profit forecasts that surpassed analyst estimates.

CEO Sanjay Mehrotra attributed the strength to the AI boom, which is fueling demand for memory components.

Micron shares edged down 0.1 per cent, with analysts citing the advance as partly attributable to the stock’s already significant year-to-date rally. The company had gained more than 270 per cent year-to-date, far outpacing the S&P 500’s roughly 12 per cent rise.

Other AI-linked stocks extended gains on the back of Micron’s optimism. Nvidia rose 0.6 per cent, and Alphabet climbed 1.5 per cent after Google released its latest AI model, Gemini 4 Argon.

The advance persisted despite continued volatility in the bond market, where swiftly rising yields have been rattling global financial markets.

The 10-year Treasury yield edged higher to 5.30 per cent from 5.29 per cent late Wednesday, hovering near its highest level since 2002. Any brief plateau would offer relief after the yield swung from less than five per cent a week earlier and from under four per cent prior to the conflict with Iran escalating.

Elevated yields weigh on the broader economy by increasing borrowing costs and suppressing equity and investment prices.

Yields are climbing amid concerns over persistent inflation and oil prices, reinforced by signals of resilient U.S. economic growth and continued federal deficit spending.

These concerns show no sign of abating, with oil prices rising again on Thursday to keep inflationary pressure elevated. Brent crude climbed 1.9 per cent to $99.88, extending its volatility on uncertainty surrounding the timeline for the Iran conflict to ease and global oil production to normalize.

A separate report indicated the U.S. economy is navigating its challenges with strength. Initial jobless claims fell last week, suggesting fewer layoffs, following a Wednesday report showing spring economic growth was revised higher than previously estimated.

Overseas, London’s FTSE 100 slipped 0.8 per cent after the 10-year U.K. government bond yield briefly spiked to 5.53 per cent before retreating to 5.42 per cent. Paris’s CAC 40 declined 0.6 per cent, mirroring an early-morning jump in the 10-year French government bond yield.

Asian markets closed higher, buoyed by AI-driven optimism following Micron’s profit report. Japan’s Nikkei 225 rose 3.3 per cent, and South Korea’s Kospi advanced 1.9 per cent.

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