Overview
- Taiwan Semiconductor’s blowout quarter and guidance for up to $56 billion in 2026 capital spending, alongside a roughly 30% revenue growth outlook for 2026, reignited the AI chip trade and lifted semiconductor shares.
- Goldman Sachs and Morgan Stanley rallied after stronger-than-expected profits, helping the Dow gain 0.6% as the S&P 500 rose 0.3% and the Nasdaq added 0.25%, with small caps outperforming.
- Oil fell about 5% after President Trump softened threats of strikes on Iran, which eased recent safe-haven flows and trimmed gains in precious metals from earlier highs.
- U.S. initial jobless claims dropped to 198,000 versus 215,000 expected, boosting the dollar to a six-week high as Fed officials signaled policy should stay restrictive.
- Asia-Pacific markets prepared to follow Wall Street’s advance, with Hong Kong logging a five-day winning streak and Australia’s ASX supported by miners and firmer banks, while a new U.S.–Taiwan trade deal outlined lower reciprocal tariffs and at least $250 billion in U.S. chip investment.