Wall Street climbs as banks rally, chips ride on TSMC beat
Wall Street climbs as banks rally, chips ride on TSMC beat
Banks surge on solid results as TSMC's strong earnings lift chip stocks, signaling a shift toward financials and AI-driven semiconductors.
U.S. stocks closed higher on Thursday as Morgan Stanley and Goldman Sachs posted solid quarterly results, lifting the financial sector. The gains in bank shares helped steer the broader market higher, even as other areas remained mixed. The day also featured a brighter outlook for semiconductors after TSMC reported a fourth-quarter profit that beat estimates, underscoring ongoing demand for AI-related chips. The upbeat results helped lift sentiment around the tech supply chain and encouraged a rotation into cyclical and value stocks.
Chip stocks picked up as sentiment improved, with AMD and Nvidia among those rallying after TSMC's report. Shares of equipment makers like Applied Materials also moved higher as investors bet that AI-driven demand would remain a key driver for the sector. The broader market benefited from the continued interest in AI and automation technologies, supporting a positive tone for growth-oriented names.
Within the S&P 500, several names posted gains while others lagged. Top gainers included KLA, Vistra, BlackRock, and NRG Energy, highlighting strength in both tech-related and energy/industrial plays. On the downside, Robinhood Markets, Coinbase Global, Devon Energy, and Boston Scientific were among notable movers lower as investors weighed recent earnings, valuations, and sector rotations.
Overall, the earnings backdrop suggested a broader rotation toward financials and AI-enabled tech, with investors parsing how upcoming reports could shape expectations for the year ahead.
