TSMC predicts robust growth, boosts US chip tool stocks
Goldman, Morgan Stanley rise after results
Semi index jumps
(Updates to close)
By Caroline Valetkevitch
NEW YORK, Jan 15 (Reuters) -
U.S. stocks rose on Thursday after two days of declines as Morgan Stanley and Goldman Sachs shares shot up following upbeat quarterly results, while Taiwan-based chipmaker TSMC’s blockbuster results boosted shares of U.S. chipmakers.
Goldman Sachs (GS.N) and Morgan Stanley (MS.N) both reported a rise in quarterly profit, helped by a flurry of dealmaking.
Shares of Goldman and Morgan Stanley were sharply higher.
This week, other banks reported mixed results that weighed on the sector, along with worries about U.S. President Donald Trump’s proposed one-year cap that would limit credit-card interest rates to 10%.
Investors are still buying stocks that are undervalued compared with tech, said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
“It’s been growth, tech or bust in this market,” he said. And today, “it’s the banks and old-school industrials” that are also doing well.
Tech stocks also rose on Thursday. The world’s main producer of advanced artificial intelligence chips, TSMC (2330.TW) , predicted robust annual growth and flagged more U.S. manufacturing capacity was in the works. U.S.-listed shares of TSMC (TSM.N) jumped.
An index of semiconductors (.SOX) shot up. Shares of Nvidia (NVDA.O) , Broadcom (AVGO.O) and chipmaking tool company Applied Materials (AMAT.O) all climbed.
According to preliminary data, the S&amp;P 500 (.SPX) gained 18.37 points, or 0.26%, to end at 6,944.57 points, while the Nasdaq Composite (.IXIC) gained 58.27 points, or 0.25%, to 23,530.02. The Dow Jones Industrial Average (.DJI) rose 296.60 points, or 0.60%, to 49,446.23.
With tech, “there was some worry as far as valuations - that they were getting a little too far ahead of themselves,” said Alan Lancz, president of Alan B. Lancz &amp; Associates Inc., an investment advisory firm, based in Toledo, Ohio.
“That’s been kind of squashed this morning with the news from Taiwan Semiconductor.”
Richly valued tech and growth stocks have lost some momentum recently as investors kicked off the year by chasing bargains.
Both mid-caps and the small-cap Russell 2000 (.RUT) have been outperforming the S&amp;P 500 so far this year.
Among other financial companies, BlackRock (BLK.N) , the world’s largest asset manager, gained after a rally in markets lifted fee income and pushed its assets under management to a record $14.04 trillion in the fourth quarter.
Results from the banks essentially have kicked off the fourth-quarter U.S. earnings season.
Broader gains
<img src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/USA-STOCKS/BROADEN/gkplqzbjnvb/chart_eikon.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="1700" height="934" original-src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/USA-STOCKS/BROADEN/gkplqzbjnvb/chart_eikon.jpg"/>

SOXL

U.S. stocks rose on January 15, led by gains in bank shares following positive quarterly results from Goldman Sachs and Morgan Stanley. TSMC's strong performance also boosted U.S. chipmakers, with the semiconductor index climbing. The S&P 500 increased by 0.26%, the Nasdaq by 0.25%, and the Dow Jones by 0.60%. Investors are showing interest in undervalued stocks, while tech stocks rebounded after concerns over valuations. BlackRock reported record assets under management, marking the start of the fourth-quarter earnings season.

- U.S. stocks rose following positive quarterly results from Goldman Sachs and Morgan Stanley, which were bolstered by increased dealmaking activity.  
- TSMC's forecast for robust growth and increased U.S. manufacturing capacity significantly boosted U.S. chipmaker shares, contributing to a rise in the semiconductor index.  
- The S&P 500, Nasdaq, and Dow Jones Industrial Average all registered gains, reflecting a broader market recovery after a recent decline.

Reuters

US STOCKS-Wall Street ends up as banks gain following results; chips rally with TSMC