Wall Street found its footing on Thursday as a rebound in major technology stocks and a sharp decline in oil prices helped stabilize investor sentiment. After two consecutive losing sessions following a record high, U.S. equities moved higher, signaling renewed confidence in the Wall Street market rebound amid easing inflation fears and encouraging corporate developments.
The S&P 500 Index (SPX) advanced 0.6%, positioning itself to snap its recent losing streak. The Dow Jones Industrial Average (DJIA) climbed about 140 points, or 0.3%, while the Nasdaq Composite (IXIC) outperformed with a gain of 0.8%, driven largely by strength in semiconductor and artificial intelligence–related stocks.
Big Tech Leads the Wall Street Market Rebound
A key catalyst behind the Wall Street market rebound was renewed optimism around artificial intelligence. Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), a crucial supplier to the global tech industry, reported quarterly profits that exceeded analyst expectations. The company also announced it may boost capital expenditures to as much as $56 billion this year to capitalize on surging AI demand.
That outlook reassured investors after recent concerns that valuations across Big Tech had run too far, too fast. Nvidia Corporation (NASDAQ:NVDA), one of the largest beneficiaries of the AI boom, had weighed heavily on the S&P 500 after falling 1.4% the previous day. Following TSM’s report, Nvidia shares rebounded 2.3%, helping lift the broader market.
TSM’s influence extends well beyond its own earnings. As a critical manufacturing partner for Nvidia and other chip designers, its confidence in sustained AI demand reinforced the long-term growth narrative. TSM’s U.S.-listed shares rose 3.7%, while ASML Holding N.V. (NASDAQ:ASML), a major supplier of semiconductor equipment, surged 6.7%, underscoring the ripple effect across the chip ecosystem.
Oil Prices Ease, Calming Inflation Fears
Another major factor supporting the Wall Street market rebound was a sharp drop in oil prices. Benchmark U.S. crude fell 4.6% to $59.04 per barrel, while Brent crude slid 4.3% to $63.69. The decline followed comments from U.S. President Donald Trump suggesting that planned executions in Iran had been halted amid widespread protests.
Markets interpreted the remarks as a sign that geopolitical tensions in a critical oil-producing region could ease, lowering the risk of supply disruptions. Although uncertainty remains around Iran’s internal situation, the immediate reaction in energy markets helped reduce inflation concerns and provided relief to equities sensitive to input costs.
Gold prices also pulled back slightly from recent record highs, another indication that investor anxiety may be cooling as risk appetite improves.
Earnings Season Adds Support
Corporate earnings continued to play an important role in stabilizing markets. Several major U.S. financial institutions reported results for the final quarter of 2025, with outcomes largely exceeding expectations.
BlackRock, Inc. (NYSE:BLK), which now oversees more than $14 trillion in assets, jumped 4.5% after delivering stronger-than-expected profit and revenue. Morgan Stanley (NYSE:MS) climbed 3.4% after also topping forecasts on both metrics. Goldman Sachs Group, Inc. (NYSE:GS) edged down 0.1%, as higher-than-expected profits were offset by a revenue miss.
Not all corporate news was positive. Boston Scientific Corporation (NYSE:BSX) fell 5.5% after announcing plans to acquire Penumbra, Inc. (NYSE:PEN) in a cash-and-stock deal valued at approximately $14.5 billion. Penumbra shares surged 11.3% on the acquisition premium, highlighting divergent reactions between acquirer and target.
Economic Data and Bond Market Reaction
In the bond market, Treasury yields edged higher after initially declining earlier in the session. Encouraging U.S. economic data suggested resilience in the labor market and manufacturing sector. Weekly jobless claims showed fewer workers applying for unemployment benefits, hinting that layoffs may be slowing.
Additional reports indicated stronger-than-expected manufacturing activity in both the mid-Atlantic region and New York state. In response, the yield on the 10-year U.S. Treasury rose to 4.14%, up from 4.12% just before the data release and near the 4.15% level seen late Wednesday.
Global Markets Show Mixed Signals
Outside the United States, stock markets delivered mixed performances. European indexes were divided, while Asian markets showed pockets of strength. South Korea’s Kospi Index stood out, jumping 1.6% for one of the strongest gains globally, reflecting optimism around technology exports and regional growth prospects.
Outlook for Wall Street
The current Wall Street market rebound reflects a delicate balance between optimism and caution. Strong earnings, easing oil prices, and renewed confidence in the AI-driven tech sector are supporting equities. At the same time, elevated valuations and geopolitical uncertainties remain key risks.
For now, investors appear encouraged by signs of economic resilience and corporate strength. Whether this rebound can turn into a sustained rally will likely depend on upcoming earnings reports, inflation trends, and the durability of demand in high-growth sectors such as artificial intelligence.
Featured Image: Freepik
