Key Takeaways
- • The S&P 500 rose 0.3% to 7,744.06 and the Dow gained 556.21 points to 52,177.69, while the Nasdaq composite added 20.16 to 26,713.03, as earnings strength offset volatility in AI stocks.
- • Marsh & McLennan rallied 4.6% after reporting a stronger-than-expected summer-quarter profit, and Kimberly-Clark climbed 4.7% on guidance for revenue and profit above analyst expectations.
- • Nvidia fell 1.8% and was the heaviest drag on the S&P 500, while Taiwan Semiconductor finished down 1.8% after reporting a profit above expectations and signaling continued strong demand into the fourth quarter of 2026.
- • The 10-year Treasury yield fell to 5.09% from 5.19%, after touching a level above 5.30% earlier in the month that was its highest since 2002.
- • South Korea's Kospi fell 7.6% and Japan's Nikkei 225 fell 4.9% after an AI-led sell-off, with the Kospi down 39% since its June record.
Summary
U.S. stock indexes rose Thursday, led by companies reporting larger profits, and pulled closer to their records even as artificial-intelligence stocks continued to swing on concerns about how long the sector's boom can last, according to the Associated Press. The S&P 500 erased an early loss to finish up 0.3%, approaching the all-time high it set the prior week. The Dow Jones Industrial Average gained 1.1%, while the Nasdaq composite added 0.1%.
Earnings drove many of the gains. Marsh & McLennan, which updated its brand name to Marsh, rallied 4.6% after reporting a summer-quarter profit stronger than analysts expected. Kimberly-Clark, the maker of Huggies, Kleenex and Kotex, climbed 4.7% after saying it expects revenue and profit for the latest quarter to exceed analyst forecasts. Bank of New York Mellon rose 3.2% after a stronger-than-expected profit, with CEO Robin Vince saying the bank saw strength across its regions.
AI stocks remained the main source of volatility. A sell-off that began on Wall Street Wednesday spread globally, sending South Korea's Kospi down 7.6% and Japan's Nikkei 225 down 4.9% before weighing on the S&P 500 at the start of Thursday's session. Nvidia, which has become Wall Street's most valuable company, fell 1.8% and was the heaviest weight on the S&P 500, though it had been down as much as 3.8% early in the day and had gained nearly 1,415% since the end of 2022. Taiwan Semiconductor Manufacturing Co.'s U.S.-listed shares fell as much as 5.3% before closing down 1.8%, despite a quarterly profit that topped expectations and CFO Wendell Huang's forecast of continued strong demand in the final three months of 2026. CoreWeave, which provides AI computing power over the cloud, fell as much as 9.5% after dropping 15.5% the prior day, then finished 5.9% higher.
The AP attributed investor unease to financing costs. Companies have borrowed heavily to fund data centers and AI chips, and bond yields worldwide reached their highest levels in years, raising borrowing costs and questions about the durability of the spending boom. High yields also tend to make investors less willing to pay high prices for expensive stocks. The 10-year Treasury yield fell to 5.09% from 5.19%, though it had topped 5.30% earlier in the month, its highest level since 2002, on inflation concerns and signs of a strong economy. The decline came even as another report showed inflation worsening more than economists expected, and as data on retail sales and jobless claims came in stronger than forecast.
Abroad, South Korea's Kospi was the weakest major market, dominated by Samsung Electronics and SK Hynix, and posted its worst day since July; it has fallen 39% since setting a record in June. European indexes were firmer given their smaller exposure to technology, with London's FTSE 100 rising 1.1%.
Earnings drove many of the gains. Marsh & McLennan, which updated its brand name to Marsh, rallied 4.6% after reporting a summer-quarter profit stronger than analysts expected. Kimberly-Clark, the maker of Huggies, Kleenex and Kotex, climbed 4.7% after saying it expects revenue and profit for the latest quarter to exceed analyst forecasts. Bank of New York Mellon rose 3.2% after a stronger-than-expected profit, with CEO Robin Vince saying the bank saw strength across its regions.
AI stocks remained the main source of volatility. A sell-off that began on Wall Street Wednesday spread globally, sending South Korea's Kospi down 7.6% and Japan's Nikkei 225 down 4.9% before weighing on the S&P 500 at the start of Thursday's session. Nvidia, which has become Wall Street's most valuable company, fell 1.8% and was the heaviest weight on the S&P 500, though it had been down as much as 3.8% early in the day and had gained nearly 1,415% since the end of 2022. Taiwan Semiconductor Manufacturing Co.'s U.S.-listed shares fell as much as 5.3% before closing down 1.8%, despite a quarterly profit that topped expectations and CFO Wendell Huang's forecast of continued strong demand in the final three months of 2026. CoreWeave, which provides AI computing power over the cloud, fell as much as 9.5% after dropping 15.5% the prior day, then finished 5.9% higher.
The AP attributed investor unease to financing costs. Companies have borrowed heavily to fund data centers and AI chips, and bond yields worldwide reached their highest levels in years, raising borrowing costs and questions about the durability of the spending boom. High yields also tend to make investors less willing to pay high prices for expensive stocks. The 10-year Treasury yield fell to 5.09% from 5.19%, though it had topped 5.30% earlier in the month, its highest level since 2002, on inflation concerns and signs of a strong economy. The decline came even as another report showed inflation worsening more than economists expected, and as data on retail sales and jobless claims came in stronger than forecast.
Abroad, South Korea's Kospi was the weakest major market, dominated by Samsung Electronics and SK Hynix, and posted its worst day since July; it has fallen 39% since setting a record in June. European indexes were firmer given their smaller exposure to technology, with London's FTSE 100 rising 1.1%.
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