Dow Jones Gains 300 Points Driven by Strong Bank Earnings, TSMC Results
Wall Street indices recovered Thursday with the Dow Jones gaining 300 points, primarily driven by strong quarterly results from Morgan Stanley and Goldman Sachs, both reaching 52-week highs. TSMC reported its eighth consecutive quarter of profit growth and increased spending guidance. Oil prices fell over 4% on eased US-Iran tensions, while precious metals saw profit booking.
*this image is generated using AI for illustrative purposes only.
Wall Street benchmark indices ended Thursday's trading session with gains, recovering some losses from Wednesday's tech sell-off, though closing below session highs.
Market Performance Overview
The Dow Jones gained close to 300 points during Thursday's session, having touched nearly 450 points higher toward the 49,600 mark at its peak. Both the S&P 500 and Nasdaq Composite posted gains of 0.25% each after cooling off from their daily highs.
Banking Sector Drives Gains
Large banking stocks provided the primary support for the Dow Jones rally, with Morgan Stanley and Goldman Sachs both delivering quarterly results that exceeded expectations.
| Bank | Daily Gain | Performance Highlight |
|---|---|---|
| Morgan Stanley | 6.00% | Strong investment banking revenue |
| Goldman Sachs | ~5.00% | Record equity-trading revenue |
Goldman Sachs achieved a Wall Street record for equity-trading revenue in a quarter, coming in $700.00 million above street expectations. Both banking stocks closed at 52-week high levels, reflecting strong investor confidence in their quarterly performance.
TSMC Reports Strong Results
Taiwan Semiconductor Manufacturing Company emerged as another highlight of Thursday's trading session. The world's largest chip manufacturing company beat expectations while reporting year-on-year profit growth for the eighth consecutive quarter.
The company also increased its spending guidance significantly:
| Parameter | Amount |
|---|---|
| 2026 Spending Guidance | $52.00-$56.00 billion |
| 2025 Spending | $40.90 billion |
US-Taiwan Trade Agreement
Taiwan reached a significant trade deal with the US, involving substantial investment commitments and tariff reductions:
| Deal Component | Details |
|---|---|
| Taiwan Investment | Minimum $250.00 billion in US chip production |
| Reciprocal Tariff Rate | Reduced to 15% from 20% |
| Zero Tariff Items | Generic pharma, aircraft components, natural resources |
Commodities and Currency Markets
Oil prices experienced significant declines overnight after the US announced it does not plan on attacking Iran, following assurances that protesters in the nation will not be executed. Brent crude fell over 4%, marking the largest decline since June, while NYMEX West Texas Intermediate dropped below the $60.00 per barrel mark.
Precious metals also saw profit booking from higher levels, with silver dropping over 4% and gold sliding below the $4,600.00 per ounce mark. The US Dollar index continued strengthening, approaching the 99.50 level.
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