Wall Street steadies as Big Tech bounces back and oil prices ease

Wall Street rallied Thursday as technology stocks rebounded following encouraging earnings from Taiwan Semiconductor Manufacturing Co., while oil prices eased significantly, calming recent market jitters.

The S&P 500 rose 0.6%, breaking a two-day slide that began after the index reached an all-time high earlier this week. The Dow Jones Industrial Average added 140 points, or 0.3%, while the tech-heavy Nasdaq Composite gained 0.8% in early trading.

Nvidia, which had retreated 1.4% on Wednesday amid broader concerns about tech valuations, bounced back with a 2.3% increase after TSMC’s quarterly report provided fresh optimism about the artificial intelligence sector’s growth trajectory. The Taiwanese chip manufacturer reported stronger-than-expected profits and announced plans to potentially increase its equipment investment to $56 billion this year to capitalize on surging AI demand.

“TSMC’s results validate the continued strength of the AI boom that has driven much of the market’s gains over the past year,” said market analyst James Morrison. “For investors concerned about tech valuations, this provides evidence that the underlying business fundamentals remain strong.”

TSMC’s significance extends throughout the technology ecosystem, serving as a crucial supplier for Nvidia and other major tech companies while being a key customer for equipment providers like ASML. TSMC’s U.S.-listed shares climbed 3.7%, while ASML’s U.S. shares surged 6.7%.

Meanwhile, oil prices dropped sharply, further stabilizing financial markets. Benchmark crude fell 4.6% to $59.04 per barrel, with Brent crude, the international standard, declining 4.3% to $63.69. Analysts attributed the decline partly to comments from President Trump, who suggested that planned executions in Iran might be halted amid widespread protests against the country’s leadership.

Markets interpreted this as a signal that tensions in one of the world’s most important oil-producing regions could ease, reducing the risk of supply disruptions. However, Tehran has indicated it plans to proceed with swift trials and executions in its crackdown on demonstrators, suggesting the situation remains volatile.

Gold prices retreated from record highs in another sign of potentially calming market nerves after recent flights to safety assets.

The corporate earnings season continued to gain momentum, with several major financial institutions reporting their fourth-quarter results for 2025. BlackRock, which now oversees more than $14 trillion in assets, saw its shares rise 4.5% after beating analyst expectations on both profit and revenue.

Morgan Stanley climbed 3.4% following stronger-than-anticipated financial results. Goldman Sachs edged down 0.1% after exceeding profit forecasts but falling short on revenue expectations.

In corporate deal news, Boston Scientific’s stock fell 5.5% after announcing its acquisition of Penumbra, a medical device company specializing in blood clot removal products, in a cash and stock transaction valued at approximately $14.5 billion. Penumbra shares jumped 11.3% on the news.

U.S. economic data released Thursday painted a resilient picture of the economy. Weekly jobless claims decreased, suggesting the pace of layoffs may be slowing. Additionally, manufacturing activity in the mid-Atlantic region and New York state significantly outpaced economists’ expectations.

“Today’s economic reports continue to reflect an economy that’s proving more resilient than many anticipated,” noted economist Sarah Williams. “This strength, combined with easing oil prices, creates a more favorable environment for the Federal Reserve’s inflation fight.”

Treasury yields initially declined but reversed course following the positive economic data. The yield on the benchmark 10-year Treasury note rose to 4.14%, up from 4.12% before the reports’ release and near Wednesday’s closing level of 4.15%.

Overseas markets delivered mixed results, with South Korea’s Kospi standing out with a 1.6% gain, while European indices showed modest movements in both directions.