Chip Stocks and Bank Earnings Ignite Mid-Session Rally
The major U.S. stock indexes are rebounding shortly after the mid-session on Thursday, helped by a chip-fueled jump after TSM released blockbuster fourth-quarter earnings reports. Strong earnings results from Morgan Stanley and Goldman Sachs also brought back buyers after a two-day setback.
At 18:16 GMT, the blue chip Dow Jones Industrial Average is trading 49523.28, up 373.65 or +0.76%. The benchmark S&P 500 Index is at 6968.98, up 42.38 or +0.61% and the Nasdaq Composite is trading 23665.68, up 193.93, up 0.83%.
Trump’s Iran Pivot Lifts Major Uncertainty Weighing on Markets
In my opinion, the biggest factor driving the price action is the lifting of one of the major uncertainties that had been encouraging investors to lighten positions earlier this week. That uncertainty was whether President Trump would order a military strike on Iran in response to Iran’s crackdown on widespread protests.
The futures markets stabilized overnight after Trump said he might hold off on attacking Iran, saying: “We’ve been told that the killing in Iran is stopping…and there’s no plan for executions.”
Strong Jobs Data Fails to Dampen Investor Enthusiasm
The buying is so strong today that stock market traders were even unfazed by economic data that pointed to a solid jobs market, which could lower expectations for interest rate cuts from the Federal Reserve. The latest weekly initial claims data came in better than expected, and the odds of an interest rate cut coming in early April actually fell from the day before, to 30.2% from 34.6%, according to the CME FedWatch Tool. Nonetheless, the market is still pricing in two quarter-point cuts in 2026, which aligns with stock market investor expectations.
Sector Rotation Shows Broadening Market Strength
The sector performance continues to improve into the mid-session with eight sectors positive, up from seven earlier in the session. Technology is still number one with a 1.38% gain. Energy (-0.11%), which was the worst performer earlier today, has improved and been replaced by Health (-0.67%) as the weakest sector, suggesting crude oil may have found support and stabilized.
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See all Dow Jones forecastsASML and Memory Chip Stocks Soar on TSM Capital Spending
ASML Holding is one of the day’s best performers with a more than 6% gain at the mid-session. Shares of the chip-equipment manufacturer rose after customer Taiwan Semiconductor Manufacturing (TSM) announced larger-than-expected capital spending gains.
TSM’s earnings beat fueled a rally in memory chip stocks. SanDisk rose 8%, and Western Digital gained more than 6%, according to CNBC. Micron Technology is more than 2% higher, and Seagate Technology rose more than 4%.
Dell and Nokia Upgraded on AI-Driven Demand Outlook
In other technology-related news, Dell Technologies gained almost 3%. The PC and server company rose following an upgrade at Barclays to overweight from equal weight, CNBC wrote. “The firm cited the strength of Dell’s AI server orders, stability of its AI operating markets and expanding opportunities in enterprise server and storage for the call.” Nokia was upgraded to overweight by Morgan Stanley on AI-driven network demand.
Nasdaq Eyes All-Time High After Breaking Key Trendline
The Nasdaq Composite Index (IXIC) jumped above a key uptrend line at 23,579.10, reaching an intraday high at 23,721.11 and putting it in a position to challenge the January high at 23,813.30. This is the last barrier before the 24,019.99 all-time high. Look for a bullish tone into the close as long as the uptrend line holds as support.
More Information in our Economic Calendar.