US Markets Update: Wall Street Stabilizes as Big Tech Recovers from Earnings Reports; Oil Prices Decline
Wall Street experienced a rebound on Thursday, driven by a resurgence in technology stocks and a significant drop in crude oil prices, which alleviated broader market concerns. The S&P 500 index rose by 0.6%, breaking a two-day losing streak that followed its recent record high. The Dow Jones Industrial Average increased by 140 points, or 0.3%, while the Nasdaq composite led the gains with a 0.8% rise, fueled by renewed interest in major tech companies.
Technology Stocks Surge
The recovery in technology shares was largely attributed to positive earnings from Taiwan Semiconductor Manufacturing Co. (TSMC), a key supplier for Nvidia and other tech giants. TSMC reported quarterly profits that exceeded analyst expectations and indicated plans to raise capital expenditures to as much as $56 billion this year to meet the growing demand for artificial intelligence applications. Following TSMC’s announcement, Nvidia, which had previously weighed on the S&P 500 with a 1.4% decline, saw its shares jump by 2.3%. TSMC’s US-listed shares surged by 3.7%, while ASML, another major supplier to chipmakers, rallied by 6.7%.
Oil Prices Decline
Market sentiment was further bolstered by a sharp decline in oil prices. US benchmark crude fell by 4.6%, settling at $59.04 a barrel, while Brent crude dropped by 4.3% to $63.69. This decrease followed comments from President Donald Trump suggesting that executions in Iran may have been halted amid ongoing protests, which eased concerns about potential supply disruptions from a key oil-producing region. Additionally, gold prices retreated from record highs, signaling a reduction in risk aversion among investors.
Corporate Earnings in Focus
As the corporate earnings season progresses, several companies reported their financial results. Asset management giant BlackRock saw its shares climb by 4.5% after posting stronger-than-expected profit and revenue figures. Morgan Stanley also experienced a 3.4% gain following similar positive results. Conversely, Goldman Sachs saw a slight decline despite beating profit estimates, as it fell short of revenue expectations. In a notable deal, Boston Scientific’s shares dropped by 5.5% after announcing a $14.5 billion cash-and-stock acquisition of Penumbra, whose shares rose by 11.3%.
Economic Indicators and Bond Yields
Bond yields experienced a slight uptick following a series of encouraging economic indicators from the US. Recent data revealed a decrease in the number of Americans filing for unemployment benefits, alongside stronger-than-expected manufacturing activity in various regions. The yield on the 10-year US Treasury rose to 4.14%, up from 4.12% earlier in the day. Meanwhile, international equity markets displayed mixed results, with South Korea’s Kospi standing out by climbing 1.6%, marking one of the strongest performances globally for the session.
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