US Stocks Rebound, AI Returns as Driver
Wall Street rallied on Thursday, buoyed by renewed buying interest in tech giants as the narrative of AI and data center spending regained momentum. The rally in megacaps helped restore market sentiment, which had shifted toward economically sensitive sectors in recent sessions.
AI-themed stocks were once again the driving force, after Taiwan Semiconductor Manufacturing (TSMC) helped ease market concerns about the sustainability of data center spending. This move sparked further buying in major chip and technology companies, with Nvidia a key supporter, while ASML also returned to the spotlight in Europe.
Meanwhile, US economic data released today signaled the economy remains quite resilient. Weekly jobless claims fell unexpectedly to their lowest level since November, reinforcing the narrative that the labor market has not weakened significantly. On the manufacturing front, the New York factory activity survey improved, while the Philadelphia Fed index surged back into expansionary territory, far exceeding market expectations.
This combination of stronger data put pressure on short-dated US government bonds and pushed yields higher, as market participants reiterated their view that the Fed was in no rush to cut interest rates. The 2-year Treasury yield rose to around 3.54% and the dollar strengthened slightly, making stock gains more selective—with technology leading the way, while other sectors moved more cautiously.
In morning trading in New York, the S&P 500 index rose about 0.6% and the Nasdaq 100 gained about 1.1%, while the Dow Jones added about 0.4%. The small-cap Russell 2000 index rose about 0.4%, reflecting improved sentiment that was still limited by rising yields.
Overall, the market has once again locked into two main themes: optimism that the AI drive hasn't died down, but strong economic data keeps the "higher interest rates for longer" narrative alive—a combination that will keep volatility high in the coming sessions.
Source: Newsmaker.id
