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Earnings Flash (STT) State Street Posts Q4 Total Revenue $3.67B, vs. FactSet Est of $3.60B
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.
Goldman Sachs and Morgan Stanley reported significant profit increases in the fourth quarter, driven by a booming stock market and increased deal-making activity. Goldman Sachs saw a 12% rise in net earnings, reaching $4.62 billion, or $14.01 per share. Morgan Stanley also experienced a notable profit jump, reflecting the overall positive trend in the investment banking sector.
China's new bank lending has declined for the second consecutive year, dropping from ¥18.09 trillion in 2024 to ¥16.27 trillion in 2025. This follows a record high of approximately ¥22.8 trillion in 2023. The decline reflects a lack of credit appetite amid ongoing struggles to boost domestic demand, exacerbated by a slump in the property market and concerns over overcapacity. Additionally, ineffective stimulus measures from Beijing have contributed to the situation.
In the global AI competition, Musk pointed out that China is expected to narrow the gap with the United States due to its advantages in electricity production scale, predicting that by 2026, China's electricity output will reach nearly three times that of the United States. A Goldman Sachs report shows that the U.S. power grid faces capacity shortages, while China's power reserve capacity will meet three times the global data center demand. Musk believes that although the U.S. restricts China's access to advanced semiconductors, the impact will weaken over time. Morgan Stanley analysts warn that the U.S. may face a power gap of up to 20% by 2028
