Wall Street Rises on Tech Rally: S&P 500 Up 0.6%, Nasdaq Gains 0.8% as Chip Stocks Surge

New York | EcoPulse24

U.S. stocks ended Thursday's session higher, propelled by strong momentum in the technology sector following robust results from chipmakers, which boosted confidence in the long-term outlook for artificial intelligence. Major indices posted gains, with semiconductor stocks standing out.

The S&P 500 climbed 0.6%, while the Nasdaq advanced 0.8%. The Dow Jones added about 200 points. The main support came from the technology sector after Taiwan Semiconductor Manufacturing Company (TSMC) announced fourth-quarter profit growth of 35% and projected faster revenue growth, directly benefiting chip-related stocks.

In the stock market, Nvidia jumped 2%, Broadcom rose about 1.3%, AMD gained 3.8%, and Micron Technology advanced 2.5%. Chip equipment stocks also saw notable gains, with Applied Materials up 8% and Lam Research rising 7.5%.

In the banking sector, earnings season remained in focus. Goldman Sachs beat profit expectations despite lower revenue, sending its shares up 1.8%. Morgan Stanley climbed 3.3%, and BlackRock rose 3.7% after surpassing both earnings and revenue forecasts.

Macroeconomic data showed continued strength in the U.S. labor market, with jobless claims remaining low and factory activity in New York improving, further supporting risk appetite.

Analysis:
The clear leadership of technology stocks, especially semiconductors, underscores renewed bets on artificial intelligence as a key profit driver. The broadening gains to banks and asset management indicate improving market sentiment supported by company results and economic data. However, sustaining this momentum will depend on major firms' ability to convert growth expectations into actual profit flows in the coming quarters.