U.S. stocks climbed on Thursday after President Trump signaled a pause on tariffs targeting critical minerals and said he has no plans to remove Federal Reserve Chair Jerome Powell, helping calm investor nerves after a volatile start to the week.
The Nasdaq Composite led gains, rising about 0.8%, while the S&P 500 added roughly 0.6%. The Dow Jones Industrial Average climbed around 0.7%, rebounding from two straight sessions of losses as optimism around AI investment, bank earnings, and easing geopolitical risks lifted sentiment.
Market Movers:
- Penumbra (PEN) +14%: Shares surged after Boston Scientific announced a definitive agreement to acquire the medical device maker in a cash-and-stock deal valuing the company at roughly $14.5 billion, including debt. Penumbra shareholders will be able to elect to receive $374 per share in cash or 3.8721 shares of Boston Scientific stock.
- Calix (CALX) +12%: The stock jumped after J.P. Morgan upgraded the telecom company to Overweight and raised its December 2026 price target to $90 from $75. The firm cited expectations for stronger broadband service provider spending and increased fiber adoption.
- Dell Technologies (DELL) +3.5%: Shares moved higher after Barclays upgraded the stock to Overweight, pointing to continued strength in AI server demand. Analysts said Dell remains well-positioned to benefit from enterprise infrastructure spending tied to artificial intelligence.
- Nokia (NOK) +4.8%: Shares rose after Morgan Stanley upgraded the stock to Overweight and lifted its price target to €6.50 from €4.20. The bank highlighted accelerating growth in AI and cloud-related revenues, which now account for a growing share of Nokia’s business.
- Lam Research (LRCX) +4.4%: The stock gained after Stifel raised its forecast for wafer fabrication equipment spending growth in 2026 to 10%–15%, up from a prior estimate of 7%–8%. The firm said increased investment in advanced foundry and memory production should benefit leading equipment suppliers.
- Taiwan Semiconductor (TSM) +6.5%: Shares jumped after the chipmaker reported a 35% surge in quarterly profit and announced plans to raise 2026 capital spending to $52 billion–$56 billion. The outlook reinforced confidence in sustained demand tied to AI infrastructure buildouts.
- Critical Metals (CRML) -3.3%: Shares fell after Trump said the U.S. will delay tariffs on critical mineral imports while seeking supply agreements with international partners. The move reduced expectations for near-term pricing support from trade restrictions.
- Disc Medicine (IRON) -6%: The stock slid after regulators delayed the review of the company’s rare-disease therapy bitopertin due to safety and data concerns. The setback added uncertainty around the timing of potential approval.
AI Optimism and Bank Earnings Lift Sentiment
Beyond individual movers, optimism surrounding the AI investment cycle continued to support technology stocks after TSMC’s results signaled durable demand for advanced chips. Semiconductor and hardware names broadly moved higher as investors leaned back into growth after Wednesday’s pullback. Financial stocks also found support following upbeat earnings from major Wall Street firms, with strong trading revenue and dealmaking activity underscoring resilience across capital markets despite a choppier macro backdrop.
Commodities Retreat as Geopolitical Tensions Cool
In commodities, oil prices slid roughly 4% as investors reacted to signs the U.S. may step back from military escalation in Iran. Gold and silver also pulled back after recent record highs, pressured by Trump’s decision to delay tariffs on critical minerals that had tightened supply expectations. The moves reflected a broader shift toward risk assets as geopolitical fears eased, reducing demand for traditional safe havens.
Looking Ahead
Investors now turn their attention to additional corporate earnings, including more reports from the financial and technology sectors, for clues on profit momentum heading into the new year. Upcoming economic data, including labor market updates, will also be closely watched for signals on the Fed’s next move. With tariff risks temporarily sidelined and confidence in monetary policy leadership intact, markets may look to build on Thursday’s gains — though volatility is likely to remain elevated as earnings season accelerates.