Market Recap - Thursday, January 15, 2026
Markets Climb as Tech Rebounds and Bank Earnings Impress
Stocks rose across the board today, lifted by strong chipmaker earnings, better-than-expected data, and encouraging results from major investment banks. The Dow gained 0.60%, the S&P 500 rose 0.26%, and the Nasdaq added 0.25%. The Russell 2000 led with a 0.86% gain, notching its second solid weekly advance in a row.
Semiconductors and AI-related stocks were in the spotlight after Taiwan Semiconductor (TSMC) reported a strong quarter and raised its long-term outlook. Nvidia rallied, while Alphabet dipped. Small caps, growth stocks, and high-beta names outperformed. Investment banks like Morgan Stanley and Goldman Sachs surged following upbeat earnings, providing a boost to financials. Airlines, machinery, and construction-related stocks also gained. On the flip side, energy stocks lagged as oil fell sharply, and weakness showed up in pharma, software, and Chinese tech.
Treasury yields rose on the short end as upbeat economic data pushed rate-cut expectations further out, with the 2-year yield hitting its highest level since early December. Gold slipped slightly while silver jumped 1.1%, and Bitcoin dipped 2.7%. Crude oil fell 4.5% to below $60/barrel, snapping a five-day rally after tensions with Iran showed signs of easing.
Driving today’s optimism was TSMC’s blowout earnings and its revised capex guidance — now expecting to spend up to $56B in 2026 to meet AI-related demand. The chipmaker also lifted its long-term revenue growth target, calming fears of an AI slowdown. Investment banks also delivered: Goldman Sachs and Morgan Stanley both topped profit expectations, with investment banking and trading revenues bouncing back strongly.
Economic data added fuel to the fire. Weekly jobless claims fell more than expected to 198K, showing continued labor market resilience. The Empire State and Philly Fed manufacturing surveys both surprised to the upside, with solid gains in new orders and shipments. The reports added to growing signs that economic momentum is picking up early in 2026.
Meanwhile, concerns about Federal Reserve independence receded after Trump said he has no plans to fire Fed Chair Jerome Powell. Rate-cut expectations have now been pared back to just 45 basis points for the year. On the geopolitical front, markets welcomed signs that the U.S. may hold off on military strikes against Iran after executions there appeared to halt.
Among top movers, TSMC (+4.4%), BlackRock (+5.9%), ASML (+5.4%), and Clearway Energy (+6.8%) all jumped on earnings or deal news. On the downside, Nutanix (-5.4%), GE HealthCare (-3.3%), and Instacart (-2.6%) fell after downgrades or competitive headlines.
Here’s Our Take:
Today’s rally was powered by a winning combo: blockbuster chip earnings, resilient economic data, and solid showings from Wall Street’s biggest banks. After a choppy start to the week, investors welcomed signs that the AI investment cycle is not only intact — it’s accelerating. TSMC’s upbeat outlook sent a strong signal across the tech landscape, helping offset some recent doubts about AI demand and software adoption.
At the same time, the strong jobless claims and manufacturing data paint a picture of an economy still firing on multiple cylinders. That’s a double-edged sword — good for growth and earnings, but it’s also nudging bond yields higher and pushing out the Fed’s timeline for cutting rates. Still, with geopolitical worries cooling (for now), and earnings season heating up, the market seems content to climb the wall of worry.
If anything, this week’s action underscores a rotation underway: from megacaps and defensives to smaller, more cyclical names. Investors should be watching for leadership shifts as earnings unfold. The rally in financials and industrials, alongside strength in AI infrastructure names, suggests the bull case for broadening out is gaining traction.
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