Major tech stocks bounced higher Thursday after posting heavy losses the previous day on trade fears, helping Wall Street to mostly advance.
The tech-heavy Nasdaq Composite rose聽0.7 per cent at the start of trading after slumping 2.8 per cent the previous day.
The S&P 500 added聽0.3 per cent while the blue-chip Dow shed 0.3聽per cent after having set a third consecutive record close on Wednesday.
Europe鈥檚 major stock markets also rose, London energised by the previous day鈥檚 oil price surge, while Asia stumbled after on tech sector concerns.
London鈥檚 FTSE 100 index rallied with BP and Shell shares gaining more than one per cent as investors also digested steady UK unemployment data.
Oil prices had vaulted two per cent higher Wednesday after signs of strengthening crude demand in top consumer the United States, though the market stabilised Thursday.
Energy majors tend to win a shot in the arm from rising crude futures that boost their revenues and profits.
The dollar firmed following losses caused by growing expectations the US Federal Reserve would cut interest rates at least once this year.
As expected, the European Central Bank on Thursday kept its key interest rates steady as it waits for firm indications that consumer price rises are stable before reducing borrowing costs again.
The bank kept the key deposit rate at 3.75 per cent, after the first cut in June ended an unprecedented streak of hikes to tame runaway inflation.
But ECB chief Christine Lagarde said there was no pre-determined rate path and the decision at September鈥檚 meeting was 鈥榳ide open鈥� and would depend upon the data.
On Wednesday, tech firms took a hit after a report said US President Joe Biden would target firms supplying China with key semiconductor technology.
Biden is reportedly looking at imposing strict curbs on companies including Tokyo Electron and Dutch firm ASML if they continued allowing Beijing access to their chip tech.
Sentiment was also dented by Donald Trump鈥檚 comments that crucial chip supplier Taiwan 鈥� home to TSMC and other major producers 鈥� should pay the US for helping the island defend itself militarily against China.
Nvidia shares, which slumped more than six per cent Wednesday, bounced 3.5聽per cent higher at the start of trading on Thursday.
Shares in ASML, rose 2.5 per cent after tumbling 12.7 per cent on Wednesday.
Shares in Tokyo Electron dived 8.8 per cent in trading in Tokyo on Thursday.聽
鈥楢n interview with Donald Trump, for Bloomberg Businessweek, saw the former president casting doubt on US willingness to defend Taiwan, should he be (re)elected in November,鈥� said Steve Clayton, head of equity funds at Hargreaves Lansdown.聽
鈥榃ith much of the world鈥檚 most advanced chip manufacturing capabilities located within Taiwan... that was not a message the market wanted to hear.聽
鈥楴or did it want to hear the Biden administration talking about tougher trade restrictions against China,鈥� Clayton said.
The latest data showed modest increases in first-time and continuing claims for unemployment benefits in the United States.
鈥楾he key takeaway from the report is that it fits with the view that there is some softening in the labour market, which is a trend that will massage the market鈥檚 belief that the Fed is likely to cut the target range for the fed funds rate before the end of the year,鈥� said Briefing.com analyst Patrick O鈥橦are.
