Stock Markets Surge Amid Tech Recovery and Earnings Reports

The Nasdaq and S&P 500 rebounded as chip stocks rose following a positive forecast from TSMC. Mega-cap stocks like Apple and Nvidia gained, while the market reacted to ongoing trade issues between the U.S. and China. Domino's Pizza fell after missing sales estimates, while Warner Bros Discovery and TSMC led gains.

The Nasdaq and the S&P 500 made a comeback on Thursday, buoyed by a rebound in megacaps and an optimistic forecast from Taiwan Semiconductor Manufacturing Co (TSMC), which boosted chip stocks after a previous sharp sell-off. TSMC's positive outlook, driven by surging demand for AI chips, resulted in its U.S.-listed shares rising by 2.1%.

Significant gains were seen in TSMC customers Apple and Nvidia, which climbed 0.5% and 2.4% respectively. The Philadelphia SE Semiconductor index recovered 1.4% after its worst day in four years. Most 'Magnificent 7' stocks, including Microsoft, Tesla, and Meta Platforms, also saw increases.

On the downside, Domino's Pizza plunged 12.7% following disappointing quarterly same-store sales. In contrast, D.R. Horton surged 8.1% on higher quarterly profits and a $4-billion share buyback plan. Throughout the market, advancing issues outpaced decliners, signaling investor optimism.

(With inputs from agencies.)