The S&P 500 Index ($SPX) (SPY) on Thursday closed up +0.26%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.60%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.32%. March E-mini S&P futures (ESH26) rose +0.24%, and March E-mini Nasdaq futures (NQH26) rose +0.32%.
Stock indexes settled higher on Thursday, led by a rally in chip makers after Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest dedicated contract chipmaker, revived confidence in the sustainability of artificial-intelligence demand. TSMC forecasted stronger-than-expected Q1 sales and boosted its 2026 capital expenditure forecast to $52 billion-$56 billion from $40.9 billion in 2025.
Stocks also found support after Thursday’s economic news showed signs of strength in the US economy after weekly jobless claims unexpectedly fell to a 6-week low, and the Jan Empire and Jan Philadelphia Fed business outlook surveys rose more than expected.
Easing geopolitical risks in Iran were also supportive for equities after President Trump said he had been assured that Iran would stop killing protesters, in a signal that the US could hold off on a threatened military response to the widespread demonstrations. WTI crude oil sank more than -4% on the news.
However, stocks fell back from their best levels as hawkish Fed comments pushed bond yields higher. The 10-year T-note yield rose +3 bp to 4.16% after Atlanta Fed President Raphael Bostic said the Fed needs to stay restrictive because he expects inflation pressures to continue through 2026. Also, Kansas City Fed President Jeff Schmid said, “With inflation pressures still evident, my preferences would be to keep monetary policy modestly restrictive.”
US weekly initial unemployment claims unexpectedly fell -9,000 to a 6-week low of 198,000, showing a stronger labor market than expectations of an increase to 215,000.
The US Jan Empire manufacturing survey of general business conditions rose +11.4 to 7.7, stronger than expectations of 1.0.
The US Jan Philadelphia Fed business outlook…
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