US Stocks Rebound Sharply, Chip Shares Lead Charge; TSMC ADR Surges 7.6%

Wall Street stocks surged on Thursday, snapping a sell-off as chip companies rallied and Microsoft's stock price soared. The Nasdaq and S&P 500 indexes ended a six-day losing streak, with the Philadelphia Semiconductor Index leaping 8.19%. Advanced Micro Devices (AMD) and Intel also saw significant gains.

Microsoft's shares jumped 15.5% after the company released its earnings report, boosted by growth in its Azure business. Other semiconductor stocks also performed well, with Micron surging 18.36% and AMD up 13%. Intel climbed 11.3%, Broadcom rose 4.73%, and Nvidia gained 2.65%.

In contrast, Meta's stock fell nearly 8% after it issued a weak revenue forecast and reported a 91% drop in free cash flow for the second quarter. Investors are now awaiting earnings reports from Apple and Amazon, which were scheduled to be released after the market close on Thursday. Amazon's stock had risen 3.9% by the end of regular trading, while Apple's had fallen 1.4%.

The market's rebound followed a significant drop on Wednesday, when the Federal Reserve maintained its interest rates. The Fed's new chair, Jerome Powell, delivered ambiguous messages, leaving markets uncertain about the future direction of interest rates. Traders now anticipate a 59% chance of a rate hike at the Fed's September meeting, according to CME's FedWatch data.