Incremental improvements in the state of the economy and a potential groundbreaking collaboration in the chip industry helped spark a broad-based market rally.

KEY TAKEAWAYS Shares of Intel are jumping more than 7% in premarket trading Wednesday following a report that TSMC has approached U.S. chip designers Nvidia, Advanced Micro Devices, and Broadcom about forming a joint venture to own and run the chipmaker's foundry division.

Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM) has proposed a joint venture involving Intel's (NASDAQ:INTC) foundry division to several major U.S. chip manufacturers, including Nvidia (NASDAQ:NVDA),