The market was looking for a catalyst that wasn't driven by the Marco economy, but once again the tech sector appears to be stepping up to push up the broader average.
Taiwan Semiconductor (TSM) played a leading role on Thursday. The company, which supplies chips to companies like Apple (APPL) and Nvidia (NVDA), reported its quarterly results before the opening bell.
The company's adjusted earnings per share were $1.48, beating Wall Street expectations of $1.38. And, perhaps more importantly, the chipmaker said artificial intelligence is fueling its success. Taiwan Semiconductor said it expects sales to increase by 20% in 2024, due in part to demand for AI.
The Semiconductor Index (^SOX) rose nearly 3% on the news, and market leader Nvida (NVDA) soared more than 2%. This comes after Bank of America upgraded Apple (AAPL) stock, sending the tech giant's stock price up nearly 3%.
Keith Lerner, co-chief information officer at Trust, said news like Thursday's remains key to driving the market higher, given the tech industry's strong position in the major averages.
“They remain focused, so even if growth slows, showing the ability of tech companies to be profitable and grow profits at a good pace will move this market forward,” Lerner told Yahoo. I think it's very important to continue to do that.” The financing will take place on Wednesday ahead of the tech company's results.
The S&P 500 (^GSPC) rose about 0.4%, with the tech-heavy Nasdaq Composite Index (^IXIC) leading the gains, rising 1% in morning trading.
