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Indexes up: Dow 0.18%, S&P 500 0.29%, Nasdaq 0.51%

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Major US chipmakers gain after upbeat TSMC results

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Salesforce ( CRM ) rises after strong revenue forecast

(Updates after markets open)

By Sukriti Gupta and Twesha Dikshit

Oct 16 (Reuters) -

Wall Street's main indexes rose on Thursday, boosted by a

strong quarterly update from TSMC that reinforced investor

optimism around AI and extended a rally in chip stocks.

TSMC, the world's biggest producer of advanced

chips, raised its full-year revenue forecast on a bullish

outlook for spending on artificial intelligence.

U.S.-listed shares of the company fell 1.1% in

choppy trading after rising more than 2% before the opening

bell.

Shares of some major U.S. chipmakers also advanced, building

on gains from Wednesday when ASML's solid quarterly

results and a $40 billion data center deal by BlackRock and a

Nvidia ( NVDA )-backed group fueled optimism around AI.

Nvidia ( NVDA ) rose 1.2%, Micron Technology ( MU ) added

2.7% and Broadcom ( AVGO ) gained 1.3%. The S&P 500 tech sector

rose 0.5%.

"AI, the demand and the euphoria around it has been

fueled by the megacap and the hyperscaler spending for it," said

Joe Mazzola, head trading & derivative strategist at Charles

Schwab.

"Now we're in kind of that second season ... where

investors are maybe moving away just from investing in the chip

makers and the hyperscalers and looking for some adjacent

plays."

The AI-driven momentum and optimism around U.S. rate cuts

have helped markets in recent months. AI-related tech stocks

were among the biggest boosts to markets this week.

Robust earnings from major U.S. banks also grabbed attention

this week, offering fresh signs of economic resilience at a time

when official macroeconomic reports remain delayed due to an

ongoing government shutdown.

At 10:02 a.m. ET, the Dow Jones Industrial Average

rose 83.57 points, or 0.18%, to 46,336.88, the S&P 500

gained 19.62 points, or 0.29%, to 6,690.68 and the Nasdaq

Composite gained 115.74 points, or 0.51%, to 22,785.82.

The S&P 500 communication services advanced

0.7%, while financials declined 0.9%.

Meanwhile, China accused the U.S. of stoking panic over its

rare earth controls and rejected a White House call to roll back

the curbs.

Top U.S. officials on Wednesday blasted China's major

expansion of rare earth export controls as a threat to global

supply chains, stressing that Washington did not want to

escalate the conflict.

President Donald Trump's threat to cancel the U.S.-China

meet and impose an additional 100% tariffs on Chinese goods

capped investors' risk appetite last week.

U.S. Treasury Secretary Scott Bessent emphasized that

Trump is ready to meet Chinese President Xi Jinping in South

Korea later this month.

Data showed the Philadelphia Fed Business index for

October declined 12.8, compared with a rise of 8.5 estimated by

the economists polled by Reuters.

Fed Governor Christopher Waller said he supported an

additional interest rate cut

in October due to mixed readings on the state of the job

market.

Among other moves, Salesforce ( CRM ) rose 7.1% as the

company said it expects revenue of more than $60 billion in

2030, above Wall Street estimates.

Hewlett Packard Enterprise ( HPE ) slumped 8.6% after it

forecast annual profit and revenue below Wall Street

expectations.

J.B. Hunt shares jumped 17.7% after a

higher

third-quarter profit.

Advancing issues outnumbered decliners by a 1.15-to-1

ratio on the NYSE and by a 1.17-to-1 ratio on the Nasdaq.

The S&P 500 posted 27 new 52-week highs and five new

lows, while the Nasdaq Composite recorded 85 new highs and 33

new lows.