U.S. stock markets recovered Thursday, with the S&P 500 index gaining 0.8% and the Nasdaq Composite climbing 1.3%, as tensions in the Middle East eased following an exchange of strikes. Oil prices retreated, with Brent crude futures dropping 2% to $76.30 a barrel, though low stockpiles continue to signal market fragility.

PepsiCo shares declined 3.3% after the company reported increased sales volume in North America but lower revenue, attributing pricing pressures to consumer budget strains. The PHLX Semiconductor index rallied over 3% as SK Hynix prepared for a $28 billion U.S. stock offering. Costco shares fell more than 4% following a monthly sales report that showed slower growth.

Existing home sales unexpectedly decreased in June, raising concerns that rising mortgage rates could negatively impact the housing market and the broader economy. Benchmark U.S. 10-year Treasury yields fell to 4.539%, breaking a recent upward trend. The broad market recovery suggests investor confidence is returning despite underlying economic pressures.