U.S. Stocks Rebound on Strong Chip Earnings Amid Tech Sector Rotation and Global Market Caution

U.S. stock markets rebounded on Thursday, led by gains in semiconductor stocks after Taiwan Semiconductor Manufacturing Company reported strong quarterly profits, easing concerns about AI demand. The Dow rose over 118 points, the S&P 500 gained 0.5%, and the Nasdaq climbed nearly 1%. Earlier in the week, markets had declined due to tech stock sell-offs, geopolitical tensions, and mixed bank earnings. Asian shares opened lower amid tech sector weakness and falling oil prices, while Japan's Nikkei retreated from a record high due to a stronger yen and tech stock declines. Investors showed rotation from high-valued tech stocks to more defensive sectors amid ongoing economic and regulatory uncertainties.