Wall Street advanced on Thursday, with the S&P 500 and Dow hitting record intraday highs, led by a positive outlook from TSMC and a larger-than-expected rise in U.S. retail sales, pointing to strong consumption.
Taiwan Semiconductor Manufacturing Co’s earnings beat market estimates and the company expects a jump in fourth-quarter revenue, driven by demand for artificial intelligence chips.
Shares of the U.S.-listed chipmaker rose 11.7%, while Nvidia gained 3.6%.
The optimism spread to other chip stocks as well, with Broadcom up 4% and Intel up 1.9%, leading the Philadelphia SE Semiconductor Index up 2.7%.
These gains put the IT index ahead of the 11 S&P 500 sectors, up 1.3%, while the financial sector extended gains from the previous session.
Meanwhile, U.S. retail sales rose 0.4% in September from the previous month, slightly more than expected, supporting speculation that the economy maintained a high pace of growth in the third quarter. Weekly jobless claims dropped unexpectedly last week.
“The strong retail sales performance continues to show the resilience of U.S. consumers as they have moved us away from recession over the past two years,” said Keith Buchanan, senior portfolio manager at GLOBALT Investments.
“Stock markets will always take good consumer news in a positive light, and I think that’s the case this morning.”
The Dow Jones rose 0.27% to 43,192.64 points, while the S&P 500 gained 0.38% to 5,864.62 points and the Nasdaq Composite rose 0.65% to 18,485.90 points.
Source: Terra
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