Wall Street found its footing on Thursday after recent turbulence. Heavyweight technology stocks led the recovery, pulling major indices higher. A sharp decline in crude oil prices helped calm broader market nerves.
Market Indices Show Strength
The S&P 500 climbed 0.6%, ending a two-day losing streak. This followed its recent record high performance. The Dow Jones Industrial Average added 140 points in early trading, a gain of 0.3%. The Nasdaq composite outperformed both, rising 0.8%.
Technology Sector Drives Recovery
Big Tech stocks attracted renewed buying interest. The rebound came after Taiwan Semiconductor Manufacturing Co. released its quarterly results. TSMC serves as a critical supplier to Nvidia and other global technology giants.
The chipmaker reported profits that exceeded analyst expectations. TSMC also indicated it might increase capital expenditure this year. The company could spend up to $56 billion to meet sustained demand from artificial intelligence applications.
Nvidia shares jumped 2.3% following the TSMC announcement. This marked a sharp reversal from the previous day when Nvidia dragged the S&P 500 lower. TSMC's US-listed shares surged 3.7%. ASML, another key chip industry supplier, rallied 6.7%.
Oil Prices Cool Sharply
Market sentiment received additional support from falling oil prices. US benchmark crude tumbled 4.6% to $59.04 per barrel. Brent crude declined 4.3% to $63.69.
The price drop followed comments from President Donald Trump about Iran. He suggested executions might have halted amid protests there. This eased fears about potential supply disruptions from the key oil-producing region.
Gold prices also retreated from record highs. The movement signaled reduced risk aversion among investors.
Corporate Earnings in Focus
Earnings season gathered momentum with several major companies reporting results. Asset management giant BlackRock climbed 4.5% after posting stronger-than-expected profit and revenue. Morgan Stanley gained 3.4% on similarly positive results.
Goldman Sachs slipped slightly despite beating profit estimates. The investment bank missed revenue expectations, disappointing some investors.
Deal Activity and Economic Indicators
Boston Scientific announced a significant acquisition that moved both companies' shares. The medical device maker plans to acquire Penumbra in a cash-and-stock deal worth roughly $14.5 billion. Boston Scientific shares slid 5.5% while Penumbra jumped 11.3%.
Bond yields edged higher following encouraging US economic data. Fewer Americans filed for unemployment benefits last week. Manufacturing activity in parts of the country also exceeded expectations.
The 10-year US Treasury yield rose to 4.14% from 4.12% earlier in the day.
Global Market Performance
Overseas equity markets showed mixed results across Europe and Asia. South Korea's Kospi stood out with a 1.6% climb. This represented one of the strongest global performances for the trading session.
