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AI Chip Surge Lifts Stocks Amid Earnings Buzz
16 Jan
Summary
- US stock indexes rose on Thursday, with the S&P 500 gaining 0.3%.
- TSMC's strong profit and increased investment fueled AI stock rallies.
- Major banks like BlackRock and Morgan Stanley reported better-than-expected profits.
U.S. stock markets showed a positive performance on Thursday, with major indexes snapping a recent losing streak. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all recorded gains, signaling a rebound after setting an all-time high earlier in the week. This upturn was largely driven by formerly high-flying AI stocks.
The semiconductor industry played a pivotal role in the market's recovery. Taiwan Semiconductor Manufacturing Co. (TSMC), a key supplier for many AI giants, reported a stronger-than-expected profit for its latest quarter. The company also announced its intention to significantly boost equipment investment this year, a move that sent positive signals throughout the AI sector and boosted stocks like Nvidia and ASML.
Earnings season for large U.S. companies continued to unfold, with several financial firms delivering positive results. BlackRock and Morgan Stanley both announced stronger profits and revenues than analysts had predicted, while Goldman Sachs exceeded profit forecasts. The market also benefited from a notable decrease in oil prices, contributing to a calmer financial environment.
