Dow jumps more than 400 points as chip, bank stocks rally

Stocks climbed Thursday, rebounding from back-to-back losses as chip and banks stocks rallied.

The Dow Jones Industrial Average added 426 points, or 0.9%, boosted by gains in Goldman Sachs and Nvidia. The S&P 500 jumped 0.7%, while the Nasdaq Composite advanced 0.9%.

Chip plays led the market after Taiwan Semiconductor delivered another record quarter, saying it expects to boost capital spending in 2026 to between $52 billion and $56 billion — an outlook signaling confidence in the artificial intelligence buildout from the world’s largest contract chipmaker. The stock jumped more than 6%. The VanEck Semiconductor ETF (SMH) climbed 3%, with Nvidia and Micron Technology adding more than 2% each.

“Taiwan Semi’s results today, and more importantly, their capex spending plans, point to reassuring investors that the AI trade is not necessarily a bubble at this point,” said Kim Forrest, investment chief at Bokeh Capital Partners. “They’re going to spend money, lots of money, to build out capacity.”

Bank stocks rose following the latest raft of quarterly earnings. Goldman Sachs advanced 4% after its fourth-quarter profit topped Wall Street estimates. Morgan Stanley jumped nearly 6% after its wealth management unit contributed to top and bottom line beats in the fourth quarter. Both stocks touched fresh 52-week highs.

A pullback in oil prices was also supportive of the market, with Brent crude oil futures and front-end West Texas Intermediate crude both sliding more than 4%.