U.S. stocks rose on Thursday, looking to recover from recent losses as investors looked for inspiration in new quarterly results as hopes for an early 2024 interest rate cut faded.
The S&P 500 (^GSPC) rose about 0.4%, and the tech-heavy Nasdaq Composite Index (^IXIC) led the gains, rising 1%. The Dow Jones Industrial Average (^DJI) fell about 0.3%.
Tech stocks led the rally following a bullish AI revenue outlook from TSMC (TSM), a major supplier to Apple (AAPL) and Nvidia (NVDA). Taiwan's contract semiconductor maker's profits fell but beat Wall Street expectations. Shares of AMD (AMD) and other chipmakers rose even more as TSMC rose nearly 7%.
Stocks continue to struggle to get back on track this year as central banker statements and mixed economic data test investors' confidence in the U.S. Federal Reserve's policy shift. Traders' odds of a rate cut in March have fallen 10 points from a week ago, according to the CME FedWatch tool.
read more: Impact of the Fed's interest rate hike suspension on bank accounts, CDs, loans, and credit cards
All eyes will be on Thursday's weekly jobless claims numbers, as investors look to the latest data to confirm expectations. The number of housing starts and building permits for December is also included in the plan.
Also in the spotlight is Atlanta Fed President Rafael Bostic, who is scheduled to appear twice today and will be closely watched to see if he strays from his colleagues' opposition to betting on lower interest rates.
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