Wall Street steadied on Thursday as chip stocks tied to the artificial-intelligence industry bounced back and oil prices eased sharply. The S&P 500 rose 0.3% and snapped a two-day losing streak after having set an all-time high earlier, while the Dow Jones Industrial Average gained 292 points, or 0.6%, and the Nasdaq composite added 0.2%.
The rebound in chip-related stocks followed a report from Taiwan Semiconductor Manufacturing Co., a major supplier to the AI industry. TSMC reported a stronger profit for the latest quarter than analysts expected and also said it could boost its equipment investment to $56 billion this year, a move described as aimed at taking advantage of the AI boom.
The market response also included a comment from TSMC’s chief financial officer, Wendell Huang. After Nvidia and other high-flying AI names had slid from recent highs, Huang said the company was seeing “continued strong demand,” which was treated by markets as an encouraging signal for the sector. TSMC’s U.S.-traded shares rose 4.4%, and ASML’s U.S.-listed stock rallied 5.4%, reflecting optimism across parts of the chip supply chain.
Other chip-related stocks helped lift broader trading as well. KLA Corp. gained 7.7% and Applied Materials rose 5.7%, even as earlier in the week some of the most heavily weighted AI names had faced pressure tied to concerns that their valuations had risen too quickly.
Oil prices fell alongside the chip rebound, adding another element of relief for investors. A barrel of benchmark U.S. crude sank 4.6% to $59.19, while Brent crude dropped 4.1% to settle at $63.76 per barrel, as traders looked for reduced risk from geopolitical tensions affecting major oil-producing regions. Gold also edged back 0.3%, which markets viewed as another sign of easing nerves.
The oil-market reading was linked to remarks from President Donald Trump, who said Wednesday afternoon that he heard “on good authority” that plans for executions in Iran have stopped amid widespread protests against the country’s leadership. Financial markets took those comments as a signal that tensions flaring above some of the world’s largest oil deposits could ease, potentially lowering the risk of disruptions to oil flows.
Earnings reporting season continued to drive individual stock moves. BlackRock rose 5.9% after reporting stronger profit and revenue than analysts expected. Morgan Stanley climbed 5.8% after also delivering stronger profit and revenue than expected, while Goldman Sachs rose 4.6% after topping analysts’ forecasts for profit but falling short on revenue.
Outside of results, Boston Scientific fell 4% after announcing it was buying Penumbra in a cash-and-stock deal valued at roughly $14.5 billion. Penumbra’s stock jumped 11.8% following the announcement.
In the bond market, Treasury yields rose after economic reports suggested continued economic strength. The yield on the 10-year Treasury climbed to 4.17% from 4.12% just before the reports, after being at 4.15% late Wednesday. One report said fewer workers applied for unemployment benefits last week, a sign that the pace of layoffs may be slowing, while other reports said manufacturing was stronger in the mid-Atlantic region and in New York state than economists expected.
Stocks of smaller companies led the market as a result, with the Russell 2000 index rising 0.9%. By the close, the S&P 500 rose 17.87 points to 6,944.47; the Dow added 292.81 to 49,442.44; and the Nasdaq composite gained 58.27 to 23,530.02. In stock markets abroad, indexes were mixed, including South Korea’s Kospi, which jumped 1.6%.