Wall Street Climbs as Tech Stocks Rebound/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street gained Thursday as tech stocks rebounded and oil prices fell. A strong earnings report from chipmaker TSMC boosted AI-related companies, while easing geopolitical concerns helped stabilize markets. The S&P 500 and Nasdaq both posted solid gains.
Wall Street Rebound Quick Looks
- S&P 500 up 0.6%, Dow Jones rises 328 points
- Nasdaq gains 0.8% as tech stocks rally
- TSMC beats earnings expectations, sparks AI optimism
- Nvidia climbs 2.5% after positive AI demand outlook
- Oil prices tumble over 4% amid easing Iran tensions
- KLA Corp. and Applied Materials jump nearly 9%
- Financials strong: BlackRock, Morgan Stanley, and Goldman beat forecasts
- Penumbra acquired by Boston Scientific in $14.5B deal
- Treasury yields rise on positive jobless and manufacturing data
- Global stock markets mixed; South Korea’s Kospi jumps 1.6%
Deep Look: Wall Street Gains as Tech Stocks Surge, Oil Prices Fall
NEW YORK — Wall Street advanced Thursday as Big Tech stocks rebounded on renewed optimism around artificial intelligence, while oil prices fell sharply, easing concerns over global supply disruptions.
The S&P 500 rose 0.6%, reversing a two-day slide and setting a course to break from recent losses following its all-time high. The Dow Jones Industrial Average added 328 points (0.7%) and the Nasdaq composite climbed 0.8% by mid-morning trading.
The rally was driven largely by chipmakers and AI-exposed tech companies after Taiwan Semiconductor Manufacturing Co. (TSMC) posted stronger-than-expected quarterly profits. TSMC, a major supplier to Nvidia and other AI leaders, also signaled plans to raise equipment spending up to $56 billion this year — an aggressive move to meet booming AI demand.
That bullish tone helped Nvidia rebound 2.5%, after dragging the market down the previous day. TSMC’s U.S.-traded shares soared 6.4%, and Dutch chip equipment maker ASML gained 5.5%. Other U.S. semiconductor stocks followed suit: KLA Corp. jumped 8.7% and Applied Materials surged 7.6%.
Wendell Huang, TSMC’s Chief Financial Officer, told investors the company is seeing “continued strong demand,” a signal that the AI investment cycle is far from over.
Meanwhile, oil prices dropped sharply, providing relief to markets rattled by recent Middle East tensions. Benchmark U.S. crude fell 4.3% to $59.22 per barrel, and Brent crude dropped 4.1% to $63.81.
The decline followed remarks from President Donald Trump, who claimed to have heard that planned executions in Iran had been halted amid ongoing protests. Investors interpreted this as a sign that geopolitical pressures in the oil-rich region may be cooling. While Iran has not confirmed a change in course, market sentiment appeared to improve.
Gold prices also pulled back slightly from recent highs, another sign that risk appetite among investors is returning.
Strong Earnings Add Momentum
Investors were also encouraged by strong earnings from major financial firms. BlackRock, which manages over $14 trillion in assets, rose 5.3% after topping expectations on both revenue and profit. Morgan Stanley posted similar results, also gaining 5.3%, while Goldman Sachs added 3.8%, overcoming a revenue miss with stronger-than-expected earnings.
In contrast, Boston Scientific dropped 3.8% after announcing a $14.5 billion acquisition of Penumbra, a company specializing in blood clot removal devices. Penumbra’s shares jumped 12.3% in response to the deal.
Economic Data Moves Bond Market
Bond yields rose Thursday after a round of upbeat economic data. The U.S. Labor Department reported a decline in jobless claims, suggesting layoffs are slowing. Separate reports revealed unexpectedly strong manufacturing activity in both the mid-Atlantic and New York regions.
In response, the 10-year Treasury yield climbed to 4.16%, up from 4.12% before the data release and slightly higher than its level late Wednesday.
Global Markets Mixed
Stock markets across Europe and Asia posted mixed results. Notably, South Korea’s Kospi rallied 1.6%, one of the biggest moves globally.
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