US stocks moved higher on Thursday, marking a recovery after two consecutive days of losses. The Nasdaq Composite led the gains, rising nearly 1%, while the S&P 500 and Dow Jones Industrial Average increased by 0.7% and 0.8%, respectively.
TSMC, the world's largest contract chipmaker, reported a 35% jump in fourth-quarter profit on Thursday. The company, a major supplier to Nvidia and Apple, said it plans to increase investment to $56 billion in 2026. Shares in the Taiwanese firm rose, lifting other chip-related stocks such as ASML. Nvidia's stock gained as much as 3%, recovering from a decline on Wednesday.
This shift followed a session where technology stocks had dragged indexes lower, prompting speculation about a rotation away from large-cap stocks.
Investors also assessed earnings reports from major banks before the market opened. Goldman Sachs and Morgan Stanley reported surging profits, benefiting from a dealmaking boom at the end of the year. BlackRock capped 2025 with a record $14 trillion in assets after its earnings beat expectations. Shares in all three financial firms advanced on Thursday.
On the economic calendar, an update on weekly jobless claims was scheduled for release.
Elsewhere, oil prices declined. Brent crude and West Texas Intermediate crude each fell by roughly 4% through Thursday morning. The drop came amid signs the US is backing away from a military response in Iran. President Trump said Wednesday he had been told authorities there will stop killing protesters.
Silver prices also fell, halting a record-setting rally that had pushed the metal's total market value above $5 trillion for the first time. The retreat followed Trump's statement that the US will hold off from imposing import tariffs on critical minerals. This risk had previously contributed to a buildup in US inventories and a supply squeeze that boosted silver prices.