Semiconductor Surge Propels Nasdaq 100 Higher

NASDAQ 100 US6311011026

A powerful rally in the chipmaking sector drove the Nasdaq 100 to a solid gain on Thursday, with the index closing up approximately 1.07 percent. The advance was fueled by optimistic signals from Taiwan Semiconductor Manufacturing (TSMC), whose bullish outlook ignited widespread buying that overpowered headwinds from rising bond yields and a strengthening U.S. dollar.

Supporting the day's tech-driven momentum, fresh U.S. economic data pointed to continued resilience. Initial jobless claims fell to a six-week low of 198,000. Furthermore, positive industrial surveys from both New York and Philadelphia underscored the underlying strength of the American economy. In response, the yield on the benchmark 10-year U.S. Treasury note climbed above 4.15 percent, while the U.S. Dollar Index touched a one-month high of 99.25 points. The Nasdaq 100's ability to post significant gains against this interest rate backdrop highlights the current dominance of AI-fueled semiconductor demand as a primary market force.

TSMC Sparks Industry-Wide Rally

Before the trading session began, the Taiwanese semiconductor foundry giant TSMC surprised the market with revenue forecasts that exceeded expectations, alongside plans for increased capital expenditure. This announcement acted as a catalyst, triggering a broad wave of buying across the entire chip industry. Notable gains among key suppliers and equipment manufacturers included:

• KLA Corp surging 8.75 percent
• Applied Materials advancing 7.89 percent
• ASML Holding gaining 6.13 percent
• Lam Research rising 6.40 percent
• AMD climbing 6.39 percent

Sector heavyweight Nvidia also benefited, adding 2.84 percent. The positive sentiment radiating from semiconductors provided sustained upward momentum for the broader technology index throughout the day.

Mixed Market Breadth Amid Gains

Despite the overall index increase, several individual components faced pressure. MicroStrategy declined 1.70 percent following a price target reduction from TD Cowen. Adobe dropped 5.41 percent, while Intuit gave up 4.75 percent. A downgrade by UBS weighed on GE HealthCare, resulting in a 2.81 percent loss.

Market breadth remained mixed. Approximately 54 percent of Nasdaq 100 constituents were trading above their 50-day moving average, with nearly 58 percent above their 200-day average. The index itself continues to trade below its own 50-day line, which stands at 25,327 points.

The coming sessions will reveal whether the dynamic driven by chip demand can persist or if the climbing bond yields will begin to exert a more pronounced braking effect.