The Dow advanced 292.81 points (0.6%) to 49,442.44, the Nasdaq climbed 58.27 points (0.3%) to 23,530.02 and the S&P 500 rose 17.87 points (0.3%) to 6,944.47.
Early strength on wall street was partly driven by upbeat earnings from taiwan semiconductor (tsm), which surged 4.4% after posting a sharp rise in fourth-quarter profits and unveiling larger-than-expected capital spending plans. The results reinforced optimism around the artificial intelligence boom, with analysts noting the company’s confidence reflected in its 30% growth guidance for 2026.
Positive sentiment was further supported by u.s. Labor data showing initial jobless claims unexpectedly fell to 198,000 in the week ended january 10, down from a revised 207,000. The decline, contrary to forecasts of an increase, signaled ongoing labor market resilience and added to the market’s upbeat tone.
Airline stocks significant moved upwards, with the NYSE Arca Airline Index surging by 2.6%. Semiconductor stocks was notably strong, as reflected by the 1.8% gain posted by the Philadelphia Semiconductor Index. Financial, networking and utilities stocks also turned in strong performances while pharmaceutical, oil and biotechnology stocks moved to the downside.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index fell by 0.4% and China's Shanghai Composite Index dipped by 0.3%, while South Korea's Kospi jumped by 1.6%. The major European markets are also mixed on the day. While the French CAC 40 Index slipped by 0.2%, the German DAX Index rose by 0.3% and the U.K.'s FTSE 100 Index climbed by 0.5%.
In the bond market, treasuries gave back ground after moving higher over the two previous sessions. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, rose 2 bps to 4.16%.