The S&P 500 (^GSPC +0.26%) rose 0.26% to 6,944.47. The Nasdaq Composite (^IXIC +0.25%) added 0.25% to 23,530.02, and the Dow Jones Industrial Average (DJINDEX: ^DJI) climbed 0.60% to 49,442.44 as chip-led gains helped break yesterday's dip.
Market movers
Semiconductor names rallied after Taiwan Semiconductor Manufacturing Co's (TSM +4.55%) remarkable results lifted peers, including Advanced Micro Devices (AMD +1.93%) and Micron Technology (MU +0.93%). Asset manager BlackRock (BLK +5.93%) gained on an earnings beat and a 10% dividend hike.
What this means for investors
Today's big news was blowout earnings from chipmaker giant TSMC. The company announced a 35% increase in net earnings for the fourth quarter, beating analyst expectations on all fronts. Crucially, the chipmaking giant raised its long-term forecast and predicted another breakout year for artificial intelligence (AI) in 2026.
TSMC's positive outlook goes some way to dampen fears about a potential AI bubble. The company gained 4.44% taking it to $341.64. Nvidia (NVDA +2.13%), also gained on chip optimism. Investor confidence is starting to return with a reduction in geopolitical tensions.
Banks were back in the green today after a difficult week. BlackRock said it had reached a record $14 trillion in assets. Morgan Stanley (MS +5.78%) and Goldman Sachs (GS +4.63%) both reported solid growth, causing the Financial Times to name last year the best for investment banking since 2021.
