Wall Street Rallies on Chip Boom and Strong U.S. Jobs Data; Dollar Surges

U.S. stocks climbed sharply on Thursday, driven by robust gains in semiconductor companies and encouraging economic data, reflecting investor confidence in the resilience of the American economy. The surge was led by tech firms specializing in advanced chips, fueled by rising demand for artificial intelligence and high-performance computing, while broader market optimism was bolstered by solid labor market numbers.


Semiconductor Strength and Economic Resilience Drive Markets


The semiconductor sector emerged as the primary engine of Wall Street’s rally, pushing major indices higher in New York. Investors welcomed upbeat sales projections and a favorable outlook for digital infrastructure investment, signaling that technology innovation continues to underpin long-term market growth.


U.S. labor market data reinforced this confidence. Weekly jobless claims fell by 9,000 to 198,000, beating expectations of 208,000 and marking one of the lowest levels of the past year. The four-week moving average dropped to 205,000, its lowest since January 2024, suggesting layoffs remain limited and hiring conditions stay resilient. Continuing claims also decreased by 19,000 to 1.884 million, while the four-week average held steady at 1.889 million. These figures indicate that the U.S. economy retains momentum despite global challenges, directly supporting equity markets.


Dollar Strength Reflects Fed Policy Expectations


The U.S. dollar surged in global forex trading, benefiting from diminished expectations of early interest rate cuts by the Federal Reserve. Market bets on a rate reduction in March fell below 22%, while expectations for a cut in the first half of 2026 dropped to roughly two-thirds, down from around 80% just a week earlier. This shift stems largely from strong employment data, which eased concerns over a weakening labor market.
Among major currencies, the Australian and Canadian dollars performed well, while the British pound struggled despite stable domestic data. The euro and Swiss franc softened, and the New Zealand dollar and Japanese yen showed moderate movements in the middle of the performance table.


Outlook: Tech Innovation and Economic Strength Support Markets


Overall, the combination of technological innovation in semiconductors and resilient economic indicators has given markets a positive lift even amid uncertainty about future Fed policy. Investors appear confident that U.S. equities and the dollar can maintain momentum, driven by structural growth in technology and strong domestic labor conditions.