Wall Street found stability on Thursday, with stocks in the artificial intelligence sector recovering after a Taiwanese chip manufacturer reported better-than-expected quarterly profits. Oil prices also declined significantly, contributing to a calmer financial environment.
The S&P 500 index increased by 0.3%, ending a two-day decline that followed its record high. The Dow Jones Industrial Average gained 292 points, or 0.6%, and the Nasdaq composite rose 0.2%.
Nvidia and other leading AI stocks supported the market's upward move. This followed Taiwan Semiconductor Manufacturing Co., a key industry supplier, announcing higher profits for the latest quarter than analysts had anticipated. TSMC stated it might raise its equipment investment to $56 billion this year to capitalize on the AI expansion.
TSMC's Chief Financial Officer Wendell Huang noted "continued strong demand," which provided a positive signal for the AI sector. Nvidia, which had dropped 1.4% on Wednesday, climbed 2.1% on Thursday.
TSMC, a major supplier to Nvidia and other large firms and a significant customer for ASML, saw its U.S.-traded stock rise 4.4%. ASML's U.S.-listed shares increased 5.4%.
Other chip-related companies also advanced. KLA Corp. gained 7.7%, and Applied Materials rose 5.7%.
Oil prices eased sharply, with U.S. benchmark crude falling 4.6% to $59.19 per barrel. Brent crude, the international standard, dropped 4.1% to $63.76 per barrel. Analysts cited comments from President Donald Trump, who said Wednesday afternoon he had heard "on good authority" that plans for executions in Iran had halted amid widespread protests against the country's leadership.
Financial markets interpreted this as a sign that tensions near major oil reserves might diminish, potentially reducing risks to oil supply disruptions.
Gold prices slipped 0.3%, another indicator of easing market anxiety.
Earnings season for major U.S. corporations accelerated, with several large financial companies reporting results for the final quarter of 2025.
BlackRock, managing over $14 trillion in investments, advanced 5.9% after posting profit and revenue above analysts' expectations.
Morgan Stanley increased 5.8% after also reporting stronger-than-expected profit and revenue. Goldman Sachs rose 4.6%; the investment bank exceeded profit forecasts but fell short on revenue.
Outside earnings, Boston Scientific declined 4% after announcing a cash and stock acquisition of Penumbra, a company specializing in blood clot removal products, valued at approximately $14.5 billion. Penumbra's stock surged 11.8%.
In the bond market, Treasury yields rose following positive U.S. economic reports. One report showed fewer workers applied for unemployment benefits last week, suggesting a slowdown in layoffs. Other data indicated manufacturing in the mid-Atlantic region and New York state was stronger than economists predicted.
The yield on the 10-year Treasury increased to 4.17% from 4.12% just before the reports' release. It stood at 4.15% late Wednesday.
Better-than-expected economic data helped smaller company stocks outperform. The Russell 2000 index, which tracks smaller firms, rose 0.9%, as their profits are often more closely linked to domestic economic strength than larger multinationals.
Overall, the S&P 500 added 17.87 points to 6,944.47. The Dow Jones Industrial Average climbed 292.81 to 49,442.44, and the Nasdaq composite increased 58.27 to 23,530.02.
Overseas, stock indexes in Europe and Asia showed mixed results. South Korea's Kospi jumped 1.6%, one of the larger global moves.