Chip Stocks Boost Wall Street to New Highs

Wall Street indices, including S&P 500 and Dow, reached near-record highs as chip stocks rose after TSMC's positive forecast and a strong U.S. retail performance. Despite rising Treasury yields, investor interest remained strong. Small caps lagged, and sectors like utilities and real estate declined slightly.

Wall Street saw significant gains on Thursday, with major indices like the S&P 500 and Dow Jones Industrial Average hovering near record peaks, driven primarily by a surge in semiconductor stocks. Taiwan Semiconductor Manufacturing Co (TSMC) delivered an optimistic forecast, beating analysts' earnings estimates and projecting increased fourth-quarter revenue due to demand for artificial intelligence chips.

The encouraging outlook from TSMC propelled its U.S.-listed shares up by 11.6%. This positive sentiment extended to other chip firms, pushing the Philadelphia SE Semiconductor index up by 2.2%. Concurrently, stronger-than-expected U.S. retail sales underscored robust consumer confidence, further buoying the market.

Despite rising U.S. Treasury yields, with the 10-year note increasing by 7.5 basis points to 4.091%, demand for U.S. equities remains strong, as noted by Thierry Wizman of Macquarie Group. While main benchmarks climbed for a second day, small-cap indexes slid amidst mixed sector performances, reiterating the market's nuanced dynamics.

(With inputs from agencies.)