US equity markets posted modest gains on Thursday, with the semiconductor sector leading the recovery despite persistent geopolitical headwinds.

The S&P 500 rose 0.2%, while the Nasdaq 100 advanced 0.61%, driven by renewed buying interest in chip stocks.

This sector-specific strength helped offset broader investor caution stemming from ongoing tensions in the Middle East.

The divergence between tech-heavy indices and broader market sentiment highlights a shift in risk appetite.

While geopolitical uncertainties continue to weigh on energy supply concerns, investors appear to be rotating into growth-oriented technology names.

The rebound in semiconductor shares suggests that market participants are increasingly focused on corporate earnings potential rather than macro-level geopolitical risks.