The session’s gains reflected two converging forces: renewed confidence in the AI investment cycle, bolstered by TSMC’s quarterly results and a planned equipment investment of up to $56 billion this year, and easing geopolitical anxiety over Iran that drove crude prices to their lowest level in weeks — pulling a key source of market volatility in the same direction on the same day.
Wall Street snapped a two-day losing streak Thursday as a stronger-than-expected earnings report from Taiwan Semiconductor Manufacturing Co. lifted chip and artificial-intelligence stocks, while oil prices fell sharply after President Donald Trump said executions in Iran appeared to have stopped amid widespread protests. The S&P 500 rose 0.3% to close at 6,944.47, the Dow Jones Industrial Average gained 292.81 points, or 0.6%, to 49,442.44, and the Nasdaq composite added 0.2% to 23,530.02, according to the Associated Press.
The day’s gains reflected two converging forces: renewed confidence in the AI investment cycle, bolstered by TSMC’s quarterly results and a planned equipment investment of up to $56 billion this year, and easing geopolitical anxiety over Iran that drove crude prices to their lowest level in weeks — pulling a key source of market volatility in the same direction on the same day.
Chip and AI stocks rebound
TSMC, a crucial supplier to Nvidia and other semiconductor giants, reported stronger profit than analysts had expected for the most recent quarter and signaled it could increase equipment spending to as much as $56 billion this year to meet AI-driven demand. TSMC Chief Financial Officer Wendell Huang said the company is seeing “continued strong demand” — a remark that served as a broader confidence signal for the AI supply chain, according to the AP.
Nvidia, which had fallen 1.4% the prior session, rose 2.1% Thursday. TSMC’s U.S.-listed shares gained 4.4% and ASML’s U.S.-listed stock rallied 5.4%. KLA Corp. advanced 7.7% and Applied Materials gained 5.7%.
Oil retreats on Iran signals
Benchmark U.S. crude sank 4.6% to $59.19 a barrel and Brent crude, the international standard, dropped 4.1% to $63.76 a barrel. Analysts attributed the decline to remarks Trump made Wednesday afternoon in which he said he had heard “on good authority” that plans for executions in Iran had stopped as protests against that country’s leadership spread. Financial markets interpreted the comment as a potential sign of easing tensions over oil-producing regions in the Middle East. Gold’s price edged back 0.3%, adding to signals of reduced anxiety across markets.
Bank earnings lift financial sector
Earnings season for large financial companies gained pace Thursday. BlackRock, which oversees more than $14 trillion in investments, rose 5.9% after reporting stronger profit and revenue than analysts had expected. Morgan Stanley climbed 5.8% after likewise delivering results above expectations. Goldman Sachs rose 4.6% after topping analysts’ profit forecasts, though it fell short of revenue estimates.
Acquisition news moves medical device stocks
Boston Scientific fell 4% after announcing it would acquire Penumbra, a maker of products that help remove blood clots, in a cash and stock deal valued at roughly $14.5 billion. Penumbra’s shares jumped 11.8% on the news.
Treasury yields and economic data
The 10-year Treasury yield settled at 4.15% Thursday, according to FRED data. The yield had moved higher during the session after economic reports showed fewer workers filed for initial unemployment benefits the prior week — a sign that the pace of layoffs may be slowing — and that manufacturing activity in the mid-Atlantic region and New York state came in significantly stronger than economists had expected.
Smaller companies, whose profits tend to track the domestic economy more closely than those of large multinationals, outperformed the broader market. The Russell 2000 index rose 0.9%.
European and Asian equity markets were mixed. South Korea’s Kospi was among the stronger performers globally, jumping 1.6%.