US sharemarkets finished higher on Thursday, rebounding from two consecutive sessions of losses as investors returned to technology and financial stocks. The Dow Jones Industrial Average rose 292.8 points, or 0.6%, to close at 49,442. The S&P 500 added 0.26% to 6,944, while the Nasdaq Composite advanced 0.25% to 23,530.
Gains were stronger earlier in the session, with the Dow up as much as 432 points and the Nasdaq more than 1% higher at its peak. Momentum faded into the close, but the rebound still marked a clear improvement in sentiment after recent declines driven by political and geopolitical uncertainty.
Chips regain momentum on AI confidence
Semiconductor stocks led the market higher following strong results from Taiwan Semiconductor Manufacturing. The world’s largest contract chipmaker delivered another record quarter and signalled a major increase in capital spending, forecasting investment of US$52bn to US$56bn in 2026.
That outlook reinforced confidence in ongoing demand linked to artificial intelligence infrastructure. Taiwan Semiconductor shares climbed more than 4% in US trading, while the VanEck Semiconductor ETF gained 2%. Nvidia rose around 2%, AMD added more than 3%, and the Philadelphia Semiconductor Index advanced 2.7%.
In Europe, ASML Holding surged as much as 8% to a record high, reflecting optimism across the global chip supply chain.
Banks rally on strong earnings
Financial stocks also provided a solid boost. Goldman Sachs rose more than 4% after reporting fourth-quarter profit that exceeded expectations, driven by record equities-trading revenue of US$4.31bn. Morgan Stanley jumped nearly 6% after sharp growth in its wealth management and debt-banking businesses, with revenue in the latter segment up 93% from a year earlier.
BlackRock climbed more than 6% after attracting strong client inflows, lifting assets under management to a record US$14 trillion. Several major banks touched fresh 52-week highs during the session.
Oil slides, easing inflation pressure
Energy prices moved sharply lower, supporting broader market sentiment. Brent crude and front-month West Texas Intermediate futures both fell more than 4% after US President Donald Trump tempered earlier threats of military action against Iran.
The drop in oil prices eased concerns around inflation and energy-driven cost pressures.
Local market
Despite the positive lead from Wall Street, Australian shares are set to open modestly lower. ASX 200 futures were down 13 points, or 0.2%, to 8,821, suggesting a subdued local start following the overnight moves in global markets.
