U.S. indexes rallied on Thursday, rebounding from consecutive losses as chip stocks and banks rebounded.
The Dow Jones Industrial Average added 292.81 points, or 0.60%, to 49,442.44, boosted by gains in Goldman Sachs and Nvidia. The S&P 500 rose 0.26% to 6,944.47, while the Nasdaq Composite advanced 0.25% to 23,530.02.
The main index ended the session below its highs. Earlier in the day, the Dow was up 431.55 points, or 0.88%. The S&P 500 rose 0.76% and the Nasdaq gained 1.06%.
Chipmaker stocks led the market after Taiwan Semiconductor posted another record quarter, saying it expects to increase capital spending in 2026 to between $52 billion and $56 billion — an outlook that signals confidence in the world’s largest contract chipmaker’s AI development. The stock jumped more than 4%. The VanEck Semiconductor ETF (SMH) rose 2% and Nvidia also added 2%.
“Taiwan Semi’s results today, and more importantly, their capital investment plans, reassure investors that AI trading is not necessarily a bubble at this point,” said Kim Forrest, Head of Investments at Bokeh Capital Partners. “They’re going to spend money, a lot of money, to build capacity.”
Banking stocks rose after the latest set of quarterly earnings, SEEbiz reports. Goldman Sachs rose more than 4% after fourth-quarter profit beat Wall Street estimates. Morgan Stanley jumped nearly 6% after its asset management unit contributed to a rise in revenue and profit in the fourth quarter. Both stocks hit new 52-week highs.
Falling oil prices also benefited the market, with Brent crude and West Texas Intermediate crude futures down more than 4%.
