US stocks rose on Thursday morning as investors returned to large-cap technology names following fresh signals of durable demand for artificial intelligence. Chip and AI-linked shares led the rebound, while Treasury yields climbed and the dollar strengthened after upbeat US data.
At 9:58 a.m. in New York, the S&P 500 rose 0.5%. The Nasdaq 100 gained 1%, while the Dow Jones Industrial Average added 0.3%. European stocks also advanced, with the Stoxx Europe 600 up 0.4%. The MSCI World Index rose 0.4%, and the Bloomberg Magnificent 7 Total Return Index gained 0.6%. Small caps also tracked higher, with the Russell 2000 up 0.4%.
In currencies, the Bloomberg Dollar Spot Index rose 0.2%. The euro fell 0.4% to $1.1600, while the British pound dropped 0.5% to $1.3371. The Japanese yen weakened 0.2% to 158.74 per dollar.
Crypto market prices moved lower. Bitcoin fell 1.6% to $96,026.92, and Ether slipped 0.9% to $3,340.77. In commodities, West Texas Intermediate crude dropped 4.5% to $59.23 a barrel. Spot gold fell 0.4% to $4,609.82 an ounce.
Traders increased exposure to AI leaders after Taiwan Semiconductor Manufacturing Co. signaled confidence in 2026 demand. The company projected capital spending as high as $56 billion for 2026. That outlook eased concerns about a slowdown in data-center investment.
Chip names and AI infrastructure shares led gains in early trading. NVIDIA rose with other megacaps, while ASML reached a record high in Europe. The move followed a recent rotation that had favored more cyclical sectors over technology.
Market participants also watched how leadership shifts inside major indexes as investors adjusted positioning across sectors. The early action suggested that buyers still support companies tied to AI compute, chips, and data-center buildouts.
Economic releases added to the risk-on tone while also pressuring bonds. Initial US jobless claims fell to 198,000 in the week ended Jan. 10. The figure marked the lowest level since November and came in below economists' expectations.
New York State factory activity expanded, and a prices-paid gauge eased to a near one-year low. Traders sold Treasuries after the releases, which lifted yields across the curve. The 10-year Treasury yield rose two basis points to 4.15%, while the 2-year yield climbed four basis points to 3.55%. The 30-year yield held near 4.78%.
Federal Reserve Bank of Chicago President Austan Goolsbee said inflation control remains the central bank’s main priority as the labor market stabilizes. The combination of firmer yields and resilient data supported the US dollar against major peers.
Oil sank after President Donald Trump signaled he may hold off on attacking Iran for now. The decline weighed on broader energy prices and reduced near-term inflation pressure in markets. Silver also retreated from a record as traders locked in gains after a sharp run.
Investors also weighed a separate technology theme: rising costs for memory and storage components. Strong demand for DRAM and NAND, tied in part to AI servers, has pushed prices higher. That trend has benefited memory-related stocks such as Sandisk, Western Digital, Micron, and Seagate, which have extended strong performance into early 2026.
Higher memory costs have created pressure for hardware makers that rely on those components. Apple, HP, and Dell face tighter margin math when input costs rise. Companies can absorb the costs or raise device prices, but either choice can affect demand and the earnings outlook.
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Goldman Sachs posted a record $4.31 billion in equities-trading revenue for the latest quarter.
Morgan Stanley said debt-underwriting revenue jumped 93% in the fourth quarter.
BlackRock reported $342 billion of fourth-quarter client cash and $14 trillion in assets under management.
BlackRock raised $12.5 billion with Microsoft for data centers and energy infrastructure.
Boston Scientific agreed to buy Penumbra in a deal valued at more than $14 billion.
Talen Energy agreed to buy three natural gas plants from Energy Capital Partners for $3.5 billion.
Mastercard, Visa, and Revolut lost a UK case tied to a planned cap on cross-border card fees.
Spotify said it will raise the prices of its premium subscriptions by 8% to support profitability.
Taiwan Semiconductor Manufacturing Co. set 2026 capital spending guidance at $56 billion.