EuroWire, NEW YORK: U.S. stocks rebounded Thursday as a renewed rally in semiconductor shares helped lift major indexes, while smaller companies continued to outperform in a broadening advance. Traders pointed to a surge in chip-related names after Taiwan Semiconductor Manufacturing Co. reported results and outlook that helped steady sentiment around demand for advanced processors used in data centers and other computing workloads.
TSMC’s U.S.-listed shares climbed 5.4%, adding momentum to a group that has driven a large share of recent equity gains. Chip-equipment makers led the move, with Applied Materials, Lam Research and KLA each rising more than 7% in the session. Nvidia gained more than 2%, and European chipmaker ASML was cited as reaching a record, underscoring the strength of the sector’s move across regions.
The rebound also highlighted how widely gains were spreading beyond a narrow group of the largest technology stocks. The S&P 500 logged 28 new highs during the session, while the Nasdaq recorded 59 new highs, signaling that more individual companies were participating in the advance. Measures tied to smaller and mid-sized firms stood out, with the S&P MidCap 400 and Russell 2000 reaching record highs.
Small-cap momentum remained a key feature of the day’s trading. The Russell 2000 outperformed the S&P 500 for a 10th straight session, the longest run of its kind since 1990. The streak added to signs that investors were rotating into a wider set of industries and company sizes, as cyclical shares and domestically oriented businesses drew attention alongside large-cap technology.
Small caps extend leadership as chip stocks jump
Economic data released Thursday added to the supportive backdrop for risk assets. Weekly jobless claims were reported as lower than expected, a reading investors often monitor for signals on labor market conditions. The combination of firm data and a strong move in chip shares helped pull equity benchmarks higher and supported a more constructive tone across several corners of the market.
Corporate earnings in the financial sector also provided fresh information for investors. Goldman Sachs reported equities-trading revenue of $4.31 billion, while Morgan Stanley reported a 93% jump in debt-banking revenue in the fourth quarter. BlackRock reported assets under management of $14.04 trillion, keeping attention on how market levels and client flows are shaping the scale of the world’s largest asset managers.
The session’s gains came with continued focus on how leadership is evolving across sectors. Market participants tracked strength not only in technology-related shares, but also in areas such as industrials and healthcare, as more companies reached new highs. The day’s record levels in the mid-cap and small-cap benchmarks reinforced the message that participation has broadened beyond a handful of mega-cap names.
Bank earnings add detail as new highs spread
By the closing bell, the day’s narrative centered on a semiconductor-led lift paired with persistent small-cap strength and a wide list of stocks hitting fresh peaks. Investors monitored chips, financial results and labor market indicators as key drivers of trading, with the combination pushing several benchmarks to record territory and keeping the focus on how far the rally has extended across company sizes and sectors.