It seems like a happy day at Wall Street as optimism came back after a shaky previous session. US markets surged at the opening bell as a powerful mix of blockbuster tech earnings, upbeat signals from big banks, and reassuring economic data convinced investors that the growth story especially around artificial intelligence is far from over.
Dow Jones Industrial Average rose 51.5 points, or 0.10%, to 49,201.1 at the open. The S&P 500 climbed 42.9 points, or 0.62%, to 6,969.46, and the Nasdaq Composite led the charge, jumping 222.2 points, or 0.95%, to 23,693.969 ( at 7:05pm, January 15, 2026)
TSMC result
The main reason for the rally came from TSMC, the world’s largest contract chipmaker, whose quarterly results exceeded expectations and increased confidence in the AI-driven tech cycle. The Taiwanese company posted a 35% jump in fourth-quarter profit, riding strong demand linked to artificial intelligence.
TSMC, a major supplier to Nvidia and Apple, said it plans to ramp up investment to as much as $56 billion in 2026. The aggressive capital expenditure guidance indicated confidence that Big Tech’s AI spending spree still has a long runway. Shares in TSMC jumped, leading to a rally across chip-related stocks, including ASML. Nvidia also bounced back from its decline on Wednesday, helping push the Nasdaq higher.
“The world’s largest chipmaker just sent a clear message, the AI boom is nowhere near done,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown to Morning Star. “These results aren’t just good for TSMC – they’re a roadmap for where the next leg of AI investment is headed.”
Strong bank earnings steady investor nerves
Technology was not the only source of support. Investors were also digesting the final set of big bank earnings, which added to the positive tone. Goldman Sachs reported profits that far outstripped expectations as dealmaking activity remained strong, bucking a broader slowdown narrative.
BlackRock capped 2025 with a record $14 trillion in assets under management, with earnings beating estimates. Together, the results reinforced the idea that corporate America is still finding ways to grow, even in a higher-rate and geopolitically uncertain environment.
Economic data added to the optimism
On the macro front, new data showed a surprise drop in weekly jobless claim showing that the US labour market may be holding up better than feared. Treasury yields rose on the news, while the dollar strengthened against major currencies, including the pound. The resilience in employment data eased concerns about an abrupt economic slowdown, giving equities another reason to move higher.
Elsewhere, oil prices moved sharply lower. Brent crude and West Texas Intermediate crude both fell by roughly 4% through Thursday morning, after signs emerged that the US may be stepping back from a military response in Iran. President Trump said on Wednesday he had been told authorities there will stop killing protesters.
Silver prices also slipped, pausing a powerful rally that had pushed the metal’s total market value above $5 trillion for the first time. The pullback followed Trump’s comments that the US would hold off on imposing import tariffs on critical minerals.
Markets refocus after a shaky session
Thursday’s upbeat rally tells us a clear reversal from the previous session, when technology stocks led markets lower. With TSMC’s results resetting expectations for AI investment and banks delivering solid earnings, investors appeared ready to lean back into risk.
TSMC reported that its net income for the fourth quarter of 2025 reached NT$505 billion (approximately $16 billion), up 35% year on year and well above analyst expectations of around NT$470 billion. Sales rose 20% year on year to more than NT$1 trillion, but it was the company’s forward-looking guidance that truly moved markets.
“TSMC is typically cautious on capacity given the chip industry’ boom and bust cycles so this aggressive build-out suggests they see a durable runway for AI demand stretching well into the next decade,” Britzman told Morning Star.
JPMorgan’s tech research team, led by Gokul Hariharan, said in its first reaction that it expects the stock to keep rising, “given better gross margins and stronger growth into 2026-27”. JPMorgan added that consensus earnings forecasts could improve by 7–10% after the results. ING analyst Marc Hesselink told Morning star that “aggressive investment reflects sustained AI-driven demand and tight supply conditions.”
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a registered financial advisor in the respective jurisdiction.