US Stocks Close Higher As Chip, Financial Stocks Rally

NEW YORK, Jan 16 (Bernama-Xinhua) -- United States (US) stocks ended higher on Thursday, snapping a two-day losing streak as a surge in semiconductor and financial shares bolstered investor confidence, Xinhua reported.

The Dow Jones Industrial Average rose 0.6 per cent to 49,442.44. The S&P 500 added 0.26 per cent to 6,944.47. The Nasdaq Composite Index increased by 0.25 per cent to 23,530.02.

Seven of the 11 primary S&P 500 sectors ended higher, with utilities and industrials leading the gainers by going up 1.04 per cent and 0.93 per cent, respectively. Meanwhile, energy and health led the laggards by losing 0.91 per cent and 0.58 per cent, respectively.

The rally was primarily spearheaded by the technology sector following a record-breaking quarterly report from TSMC, which announced plans to increase its 2026 capital expenditure to between US$52 billion and US$56 billion, a move seen as a strong vote of confidence in the sustained global demand for artificial intelligence (AI) infrastructure.

TSMC shares climbed 4.44 per cent. The optimism spread across the semiconductor industry with the VanEck Semiconductor ETF rising 2.08 per cent, while industry leaders Nvidia and Micron Technology gained 2.13 per cent and 0.98 per cent, respectively.

The financial sector also provided significant upward momentum as investors processed the latest wave of fourth-quarter earnings. Goldman Sachs and Morgan Stanley both reported surging profits, driven by a year-end resurgence in global dealmaking.

Meanwhile, asset management giant BlackRock saw its shares jump 5.93 per cent after ending 2025 with a record US$14 trillion in assets under management and exceeding quarterly earnings estimates.

On the economic front, data from the US Department of Labour indicated continued resilience in the US job market. Initial requests for unemployment benefits for the week ending Jan 10 fell to 198,000, significantly lower than the 215,000 claims projected by economists.

Further supporting the market was a notable decline in energy costs. Global oil prices retreated, with both Brent crude and West Texas Intermediate futures sliding more than four per cent during the session. 

-- BERNAMA-XINHUA