US stocks end higher boosted by earnings from banks and TSMC
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US stocks ended higher on Thursday, driven by strong earnings from banks such as Morgan Stanley and Goldman Sachs, as well as a boost from Taiwan-based chipmaker TSMC. The Dow, S&P 500, and Nasdaq all saw gains, with Morgan Stanley's shares rising nearly six percent and Goldman Sachs advancing nearly five percent. The banking sector is expected to continue performing well due to strong M&A activity and investment banking revenue.
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Market impact analysis based on bullish sentiment with 85% confidence.
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Original source
STORY: Stocks rose Thursday with the Dow adding six-tenths of one percent and the S&P 500 and the Nasdaq climbing a quarter of one percent each.Chip stocks got a boost courtesy of blockbuster results from Taiwan-based chipmaker TSMC.While strong earnings from Morgan Stanley and Goldman Sachs gave a lift to some banking stocks, Morgan Stanley’s shares rose close to six percent while Goldman advanced nearly five percent.Joe Hegener, founder and chief investment officer with Asterozoa Capital Management says he expects these banks to continue to perform well in the quarters ahead.“Morgan Stanley and Goldman Sachs and the rest of the banking sector, their earnings across the board have been really robust on the back of pickup in investment banking activity. The M&A environment is incredibly strong right now. A lot of the sales and trading groups have had a gangbuster year in 2025. We think that trend also continues. And particularly for Morgan Stanley, a very large percentage of their revenue also comes from the wealth management division. And that also is experiencing not only efficiency gains via automation and technology. But the mere fact that equity markets are at all-time highs, assets under management are growing, and that's a boon to the baseline or the bottom line rather as well.”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 have been outperforming the S&P 500 so far this year.Other stocks on the move include BlackRock, which increased six percent. A rally in markets lifted fee income at the world’s largest asset manager.And Eli Lilly fell nearly four percent after Reuters reported the U.S. FDA has delayed a decision on the company's weight-loss pill by a couple of weeks.
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Original article published by Yahoo Finance on January 16, 2026. Analysis and insights provided by AnalystMarkets AI.