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

Chip designers Nvidia and Broadcom are running manufacturing tests with Intel , two sources familiar with the matter told Reuters, demonstrating early confidence in the struggling company's advanced production techniques.

STORY: Shares of Intel rose as much as 7% on Wednesday following a Reuters report that Taiwanese chipmaking giant TSMC has pitched several U.S. chip designers on taking stakes in a joint venture that would operate struggling Intel factories.