U.S. stocks have rallied for three straight days: Dow Jones breaks through 40,000 points, PHLX Semiconductor Index soars 5.63%, TSMC's ADR jumps 4.04%
The U.S. stock market has risen for three consecutive days, as the Dow Jones index surged 486.83 points on April 24, closing at 40,093.40, breaking the 40,000-point mark for the first time. Technology stocks led the gains, as the Philadelphia Semiconductor Index soared 5.63% and TSMC ADR rose 4.04%. The market was influenced by mixed signals from Federal Reserve officials about rate cuts, along with Trump's calls for rate cuts and his announcement of new tariff measures. Trump claimed to have held talks with China, but China denied that trade negotiations had begun, leaving the trade outlook uncertain.
Key Updates
04/25 02:34
U.S. stocks have rallied for three straight days: Dow Jones breaks through 40,000 points, PHLX Semiconductor Index soars 5.63%, TSMC's ADR jumps 4.04%
The U.S. stock market has risen for three consecutive days, as the Dow Jones index surged 486.83 points on April 24, closing at 40,093.40, breaking the 40,000-point mark for the first time. Technology stocks led the gains, as the Philadelphia Semiconductor Index soared 5.63% and TSMC ADR rose 4.04%. The market was influenced by mixed signals from Federal Reserve officials about rate cuts, along with Trump's calls for rate cuts and his announcement of new tariff measures. Trump claimed to have held talks with China, but China denied that trade negotiations had begun, leaving the trade outlook uncertain.
All Three Major U.S. Stock Indices Rise, Dow Reaches Historic Milestone
On Thursday, U.S. stocks rose across the board. The Dow Jones Industrial Average rose 486.83 points, or 1.23%, closing at 40,093.40 points, marking its first break above 40,000 points in nearly two weeks. The S&P 500 Index rose 108.91 points, or 2.03%, closing at 5,484.77 points; the Nasdaq Index surged 457.99 points, or 2.74%, closing at 17,166.04 points. This marks the third consecutive trading day of gains for the three major indices, indicating a rebound in market risk appetite.
Technology and semiconductor stocks performed particularly well. The PHLX Semiconductor Index soared 224.27 points, or 5.63%, closing at 4,208.19 points, marking the largest single-day gain in nearly a week. Chip stocks such as Broadcom (+6.35%), Micron (+6.16%), Texas Instruments (+6.56%), and Applied Materials (+4.59%) all had impressive performances. NVIDIA rose 3.62%, closing at $106.43, countering rumors of a slowdown in AI data center investments.
TSMC ADR Rises 4.04%, Leading Tech Stocks Higher
TSMC ADR (TSM) closed up $6.37, or 4.04%, at $164.18, equivalent to approximately NT$1,068.12 in Taiwan. ASE Technology Holding ADR rose 1.64%, while UMC ADR slightly declined by 1.57%. TSMC recently showcased its 1.4-nanometer process technology at a U.S. technology forum, with mass production expected in 2028. The market anticipates that Apple will be the first to adopt it, further boosting investor confidence.
U.S. tech giants also strengthened in tandem. Microsoft (+3.45%), Amazon (+3.29%), Alphabet (+2.53%), Meta (+2.48%), and Apple (+1.84%) all closed higher. Alphabet, Google's parent company, announced its earnings after the market closed, with first-quarter revenue and earnings per share exceeding expectations. It also announced a $70 billion stock buyback plan, causing its stock price to jump nearly 6% after hours.
Fed Officials Divided on Rate Cuts
Recent signals from Federal Reserve (Fed) officials regarding monetary policy have been mixed. Fed Governor Christopher Waller stated that he would support an early rate cut if the job market shows substantial deterioration. He noted that if the Trump administration reinstates high tariffs, companies might lay off workers due to rising costs, providing a justification for rate cuts.
Conversely, Cleveland Fed President Beth Hammack advocated for patience until more "conclusive data" is available. She stated that if clear signs of economic slowdown appear before June, the Fed does not rule out the possibility of action, but for now, observation is necessary.
According to the CME FedWatch tool, the market's expectation for a rate cut in June has slightly risen to over 40%, but consensus has not been reached. Federal Reserve Chair Jerome Powell maintains a hawkish stance, emphasizing that inflation is not yet fully under control and that caution is needed.
Trump Criticizes Fed Again and Previews New Tariffs
Former U.S. President Trump once again publicly criticized the Fed on Thursday for being slow to act, urging the Fed to cut rates swiftly. He stated that if the Fed does not take action, it will place unnecessary pressure on the economy. Trump also revealed that he might announce new tariff measures against multiple countries, including China, in the "next two to three weeks."
Trump noted that a meeting was held with China that morning but did not disclose details. However, Chinese Ministry of Commerce spokesperson He Yadong responded that no trade negotiations have been initiated between the two sides and demanded that the U.S. first remove all unilateral tariffs before resuming dialogue in good faith.
Currently, the U.S. maintains a 10% tariff on almost all imported goods, with punitive rates as high as 145% on Chinese goods. Trump stated that future tariffs on Chinese goods might be reduced to a range of 50% to 65%, but the specific timeline and conditions remain unclear.
Economic Data and Market Reaction
The latest U.S. economic data shows that initial jobless claims last week were 222,000, in line with market expectations, while continuing claims were 1.841 million, slightly below expectations. The preliminary monthly increase in durable goods orders for March was 9.2%, far exceeding the expected 2.1%, indicating continued momentum in corporate capital expenditures.
Expectations for a rate cut have increased, causing the dollar index to slightly retreat, while gold and oil prices rebounded simultaneously. The VIX, the CBOE Volatility Index, fell by 6.92% to 26.48, reflecting improved market risk sentiment.
