Wall Street Rebounds as AI Stocks Regain Momentum and Oil Prices Ease
The US stock market experienced a welcome rebound on Thursday, with the S&P 500 rising 0.3% and snapping a two-day losing streak. The Dow Jones Industrial Average added 292 points, or 0.6%, while the Nasdaq composite rose 0.2%. This uptick was largely driven by the artificial intelligence (AI) industry, which saw a significant bounce back following an encouraging report from Taiwanese chip giant, Taiwan Semiconductor Manufacturing Co. (TSMC).
TSMC, a major supplier to the AI industry, reported a stronger profit for the latest quarter than analysts expected. The company also announced plans to boost its investment in equipment to $56 billion this year, taking advantage of the AI boom. This news had a positive impact on AI stocks, including Nvidia, which rose 2.1% after sinking 1.4% the previous day. TSMC’s stock, which trades in the US, rose 4.4%, while ASML’s US-listed stock rallied 5.4%.
Chip-Related Companies Lead the Market
Other chip-related companies also experienced significant gains, including KLA Corp., which rose 7.7%, and Applied Materials, which gained 5.7%. These companies are crucial players in the AI industry, and their performance is closely tied to the sector’s overall growth. The rebound in AI stocks helped to lift the broader market, with the S&P 500 and Dow Jones Industrial Average both experiencing gains.
The easing of oil prices also contributed to the market’s rebound. A barrel of benchmark US crude sank 4.6% to $59.19, while Brent crude, the international standard, dropped 4.1% to settle at $63.76 per barrel. This decline was largely driven by comments from President Donald Trump, who stated that he had heard “on good authority” that plans for executions in Iran had stopped amid widespread protests against the country’s leadership.
Earnings Season Continues
The earnings reporting season for big US companies continued to pick up pace, with several major financial companies delivering their results for the last three months of 2025. BlackRock, the giant investment manager, rose 5.9% after reporting stronger profit and revenue than analysts expected. Morgan Stanley climbed 5.8% after 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 earnings, Boston Scientific fell 4% after announcing it would acquire Penumbra, a company that specializes in products to remove blood clots, in a cash and stock deal valued at roughly $14.5 billion. Penumbra’s stock jumped 11.8% on the news.
In the bond market, Treasury yields rose following encouraging reports on the US economy. The yield on the 10-year Treasury climbed to 4.17% from 4.12% just before the release of the reports. The stronger-than-expected data on the US economy helped stocks of smaller companies to lead the market, with the Russell 2000 index rising 0.9%.
All told, the S&P 500 rose 17.87 points to 6,944.47, while the Dow Jones Industrial Average added 292.81 to 49,442.44, and the Nasdaq composite gained 58.27 to 23,530.02. For more information, visit Here
Image Source: www.latimes.com
