Stock market today: Dow, S&P 500, Nasdaq rise as Nvidia and chip stocks jump

Tech led US stocks to record highs Thursday as TSMC's (TSM) upbeat outlook eased worries about artificial intelligence chip demand, helping lift shares of chip heavyweight Nvidia (NVDA) to an intraday all-time high. Strong retail sales data also reinforced overall strength in the US economy.

The tech-heavy Nasdaq Composite (^IXIC) rose more than 0.5%, while the S&P 500 (^GSPC) added 0.3% after touching an intraday record. The Dow Jones Industrial Average (^DJI) also rose 0.4% to hover near all-time highs.

Contract chipmaker TSMC posted a 54% jump in quarterly profit to beat Wall Street estimates and raised its forecast for 2024 revenue growth amid surging AI demand. The outlook boost from the main chipmaker for Apple (AAPL) and Nvidia reassured a market spooked by ASML's (ASML) downbeat sales forecast, reviving hopes for an AI boom.

TSMC's US-listed shares climbed as much as 12.5%, poised to cross a $1 trillion market valuation if the gains hold in the regular session. Its forecast helped spur a rally in chip stocks, including Arm (ARM), Broadcom (AVGO), and Nvidia, which all were up more than 2%.

On the data front, retail sales jumped 0.4%, more than the 0.3% rise expected, giving credence to the argument the economy could be reaccelerating following a surprisingly strong September jobs report. Weekly jobless claims came in at 241,000, far below expectations, and a drop from the prior week's upwardly revised 260,000. The data released Thursday morning was watched by investors debating whether the Federal Reserve will hold off from cutting interest rates in November.

After a stellar showing by big banks, the focus is now on Big Tech earnings to wipe away the disappointments of the last quarter. After the bell, Netflix (NFLX) becomes the first megacap to report, with Wall Street on watch for price-hike news to potentially lift the stock.

Optimism over AI demand in Taiwan Semiconductor Manufacturing Company's (TSM) blowout third quarter earnings was boosting chip stocks across the board on Thursday, sending shares of chip giant Nvidia (NVDA) to record highs.

As Yahoo Finance's Laura Bratton reported earlier, TSMC posted a quarterly profit of $325.3 billion New Taiwan dollars ($10.1 billion), up 54% from the prior year, surpassing Wall Street’s forecasts. The company also raised its full-year sales outlook.

US-listed TSMC shares jumped 13% on the news to all-time highs, pushing the company's market capitalization past the $1 trillion mark.

TSMC is a major supplier to Nvidia. Shares of the AI chip heavyweight rose more than 3% to touch an intraday record, while Advanced Micro Devices (AMD), Qualcomm (QCOM) and Broadcom (AVGO) also gained.

Read more here.

Yahoo Finance's Alexandra Canal reports:

Disney (DIS) hiked the prices of its various subscription plans on Thursday, highlighting a trend that's gained traction over the past year as media companies focus on improving profitability.

Disney first announced the price hikes in August, revealing increases across its various Disney+ and Hulu plans, with these changes set to take effect alongside the Disney+ debuts of Marvel's "Agatha All Along" and Pixar's "Inside Out 2."

Most plans will see subscription costs rise by $1 to $2 per month. Hulu Live TV plans will see more sizable increases, rising by $6 a month.

Read more here.

Shares of chip heavyweight Nvidia (NVDA) briefly touched a new intraday record of $140.89. The stock gained more than 2% on Thursday after semiconductor manufacturer TSMC (TSM) posted stronger than expected quarterly results.

Gold touched a record high on Thursday, giving fuel to the bulls' argument that the precious metal’s rally this year isn’t over.

Gold futures (GC=F) jumped more than 0.5% to hover above $2,706 per ounce. Spot gold also rose to a daily high just north of $2,690.

Year to date, gold is up more than 30%, beating out the S&P 500's (^GSPC) gain of roughly 22%.

The expectation that the Federal Reserve will continue to cut interest rates coupled with central banks' accumulation of the yellow metal has made gold one of the best-performing commodities of 2024.

Homebuilders are feeling more confident about the housing market despite a recent sharp rise in mortgage rates.

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index rose two points to 43 in October from the previous month, marking the second consecutive monthly gain. October’s reading was higher than economists’ estimates of 42, per Bloomberg data.

Still, any reading under 50 indicates more builders view conditions as poor rather than good.

“While housing affordability remains low, builders are feeling more optimistic about 2025 market conditions,” NAHB Chairman Carl Harris, a custom homebuilder from Wichita, Kan., said in a press release.

Mortgage rates have been rising recently, with the average rate on a 30-year fixed rate loan climbing to 6.32% last week from 6.12% a week earlier in the biggest week-over-week increase since April., according to Freddie Mac. Mortgage rates, which tend to follow US Treasury yields, have been recently moving upward as strong job growth and persistent inflation leads traders to pare back their expectations on how aggressively the Fed will cut interest rates.

The NAHB survey also showed more builders offered concessions in October. The survey found that 62% of builders used some sort of sales incentive to close the deal, up from 61% in September. Meanwhile, 32% of builders cut home prices to bolster sales in October, similar to last month. The average price reduction was 6%, up from 5% last month.

The gauge measuring sales outlook over the next six months rose 4 points to 57. The prospective-buyer traffic gauge and the NAHB index of current sales conditions also both gained two points in October.

The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) touched record intraday highs on Thursday morning, gaining roughly 0.3% and 0.4% respectively.

The Nasdaq Composite (^IXIC) rose 0.6%, with Technology (XLK) leading the gains.

Lucid shares tanked more than 14% on Thursday morning after the luxury electric vehicle maker announced a stock offering to raise about $1.67 billion.

Year to date, Lucid shares are down more than 32%.

The major averages rose on Thursday with tech stocks leading the gains after chipmaker TSMC's (TSM) upbeat outlook helped send the semiconductor sector higher.

The tech-heavy Nasdaq Composite (^IXIC) rose 0.9%, while the S&P 500 (^GSPC) added 0.6%. The Dow Jones Industrial Average (^DJI) rose 0.3%.

Strong economic data also helped lift stocks. September's retail sales rose 0.4% versus estimates of 0.3% — a sharp increase from August's 0.1% rise.

Meanwhile, jobless claims for the week ended Oct. 12 came in at 241,000, versus estimates of 259,000.

September's retail sales rose 0.4% versus estimates of 0.3% — a sharp acceleration off August's 0.1% growth.

Meanwhile, jobless claims for the week ended Oct. 12 came in at 241,000, versus estimates of 259,000. The prior week's reading was revised up to 260,000.

The data released Thursday morning gives fuel to the argument that the economy could be reaccelerating following a strong September jobs report. Investors were watching the data for clues on what the Federal Reserve's interest rate move will be at the next FOMC meeting in November.

US-listed shares of Taiwan Semiconductor Manufacturing Company (TSM) surged 9.6% in premarket trading, putting the stock in position for an all-time high after its third quarter earnings beat analyst estimates. TSMC recorded a 54% jump in profit and raised its full-year revenue outlook.

TSMC manufactures chips for Nvidia (NVDA) and its rival Advanced Micro Devices (AMD) as well as Broadcom (AVGO) and many other tech firms. Nvidia shares jumped 3%, AMD rose 2.7%, and Broadcom jumped 2.8% premarket on the news.

Here's a look at TSMC's results:

Adjusted earnings per share of 12.54 New Taiwan dollars ($0.39) versus NT$11.55 ($0.36) expected

Revenue of 759.7 billion New Taiwan dollars ($23.5 billion) versus NT$751.1 billion ($23.3 billion) expected

The chip stocks' rally partially reverses the sector's losses earlier this week, driven by fears over potential further US trade restrictions and a gloomy report from semiconductor equipment manufacturer ASML.

Analysts at Needham, Bernstein, Barclays, and other investment firms reiterated their Buy ratings on TSM stock on Thursday morning. Of the Wall Street analysts tracked by Bloomberg who cover the company, some 23 recommend buying the stock, while only one analyst has a Hold rating.

On average, analysts see shares rising to about $217 each over the next 12 months, per Bloomberg data.

Earnings: Netflix (NFLX), Blackstone (BX), Travelers (TRV), First National Bank (FBAK), Western Alliance (WAL), WD-40 (WDFC)

Economic data: Initial jobless claims; Retail sales (September); Philadelphia Fed Business Outlook, (October); Industrial production (September); NAHB housing market index (October); Leading Index, (March); Existing home sales, (March)

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