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Reading: Taiwan Semiconductor’s Surge Lifts U.S. Markets Out of Tech Slump
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Taiwan Semiconductor’s Surge Lifts U.S. Markets Out of Tech Slump

News Desk
Last updated: January 16, 2026 7:02 am
News Desk
Published: January 16, 2026
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On January 15, 2026, significant gains in the semiconductor sector, driven by remarkable earnings from Taiwan Semiconductor Manufacturing Company (TSMC), energized major U.S. stock indexes, pulling them out of a recent tech slump. The S&P 500 witnessed a modest rise of 0.26%, closing at 6,944.47, while the Nasdaq Composite gained 0.25% to reach 23,530.02. The Dow Jones Industrial Average saw an even more substantial uptick, climbing 0.60% to finish at 49,442.44. These gains were primarily attributed to a rally in semiconductor stocks following TSMC’s impressive financial results.

TSMC’s stock surged by 4.55%, buoying several related companies in the sector. Advanced Micro Devices (AMD) experienced a 1.87% increase, and Micron Technology (MU) rose by 0.98%. Additionally, asset management giant BlackRock reported a strong earnings performance, which propelled its stock up by 5.93%, alongside a notable 10% increase in its dividend.

The standout news of the day came from TSMC’s announcement of a 35% increase in net earnings for the fourth quarter, surpassing analyst expectations on multiple fronts. Significantly, the company also raised its long-term forecast and expressed bullish sentiments for another year of growth in the artificial intelligence (AI) sector in 2026. This optimistic outlook helped to alleviate concerns surrounding a potential AI bubble. Following the earnings release, TSMC’s shares climbed to $341.64.

The overall chip market sentiment was positive, further reflected in gains by Nvidia, which rose by 2.06%. Investor confidence appeared to be stabilizing, aided by a reduction in geopolitical tensions. Following a tumultuous week, banks also regained footing in the market. BlackRock noted that it had achieved a record of $14 trillion in assets under management. Furthermore, both Morgan Stanley and Goldman Sachs reported solid growth figures, which prompted the Financial Times to declare the previous year as the best for investment banking since 2021.

In summary, the day’s trading reflected a resurgence in investor enthusiasm, particularly in the tech and banking sectors, driven by robust corporate earnings and a more favorable geopolitical climate. The markets concluded on a high note, with several key players demonstrating strong performance amidst optimistic forecasts for the future.

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