Tech companies, led by Apple, powered the market Thursday and pulled the major averages into positive territory.

The Dow Jones Industrial Average added 211 points, or 0.6%, rebounding from its 143 point loss earlier in the trading session. The tech-heavy Nasdaq jumped 1.3%, turning it positive around 0.2% for the year. The S&P 500 climbed 0.8%.

Apple shares ticked higher by 3.4% after Bank of America upgraded the stock to buy, calling for more than 20% upside over the next 12 months. This put the tech giant on pace for its best day since May 5, 2023. The Technology Select Sector SPDR Fund (XLK) also popped 1.9%, reaching an all-time high.

Taiwan Semiconductor Manufacturing Co, the world’s largest chipmaker, added more than 9% after posting an earnings and revenue beat for the fourth quarter. This helped push the VanEck Semiconductor ETF (SMH) up more than 3% to reach an all-time high.

Tech shares have “gotten a boost today from the TSMC update, which had a lot of positivity on forward guidance for semiconductors and AI, to the extent that’s what most of these companies are trading on. You can see the price action move to that,” said Ross Mayfield, investment strategy analyst at Baird.

“As the macro environment evolves this year, if there’s still tailwind for AI, it’s going to show up in the in the stocks most levered [towards] AI,” Mayfield added.

The 10-year Treasury yield hovered near the 4.15% level on Thursday as fresh jobs data indicated ongoing tightness in the labor market. First-time filings for unemployment insurance came in at 187,000 for the week ended Jan. 13, down 16,000 from the previous period, the Labor Department reported Thursday. That was stronger than economists’ consensus estimate of 208,000, according to numbers gathered by Dow Jones.

Investors are concerned that a buoyant labor market coupled with robust consumer spending, reflected in Wednesday’s retail sales report for December, may mean fewer rate cuts from the Federal Reserve than many are expecting. Currently, markets are pricing in a roughly 56% chance of a quarter percentage point rate cut in March, according to the CME FedWatch Tool.

“The market really got ahead of itself last year on rate cuts, [when] we got as low as [around] 3.8% on the 10-year,” said Jay Hatfield, CEO at Infrastructure Capital Management. “Tech is viewed as a safe haven when rates are rising. … So you’re seeing that dynamic now play out.”

Atlanta Fed President Raphael Bostic on Thursday said he expects the central bank to start reducing rates in the third quarter. While that’s sooner than Bostic previously had expected, it also puts the Fed on a slower cutting pace than the market is anticipating.

Correction: Raphael Bostic is the president of the Atlanta Fed. An earlier version misidentified his district.