The US markets snapped the two-day losing streak on Thursday amid Trump's softer tone on Iran bouyed the investor sentiment. The Dow Jones closed with 0.6% gains, the NASDAQ and S&P500 with 0.2% gains on Thursday.

The rally was partially led by semiconductor stocks after TSMC, one of the leading semiconductor manufacturers, posted strong quarterly earnings.

TSMC reported 8 consecutive quarters of profit growth following the optimism around AI, and the TSMC shares jumped 4.4%. Consequently, shares of Nvidia climbed 2.1%, AMD rose 1.9%, Applied Materials rose 5.6%, Micron up 1.1% and Broadcom 0.9%.

Similarly, Financial stocks also rebounded from the lows as Trump indicated he is keen or plans to oust the Federal Reserve chairman Jerome Powell. Following that, shares of Goldman Sachs jumped 4.6%, and Morgan Stanley jumped by 5.8%.

The US and Taiwan signed a trade agreement on Thursday to boost American semiconductor production in exchange of lower tariffs. As a part of the agreement, the Taiwan semiconductor industry will build several new factories in Arizona as part of a $250 billion investment. In return, the US will cut tariffs on Taiwanese goods from 20% to 15%.

However, investors continued to remain cautious amid the rising geopolitical risks involving Iran and Greenland. The White Secretary on Thursday evening asserted that the US president is keen on acquiring Greenland.