On Thursday, stock markets closed higher, with the S&P 500 Index up 0.26%, the Dow Jones up 0.60%, and the Nasdaq 100 up 0.32%. This rally was driven by a resurgence in chip makers, following Taiwan Semiconductor Manufacturing Co’s (TSMC) forecast of stronger-than-expected Q1 sales and an increased 2026 capital expenditure forecast of $52 billion to $56 billion, up from $40.9 billion in 2025.
Notably, US weekly jobless claims fell by 9,000, reaching a six-week low of 198,000, surpassing expectations of a rise to 215,000. The January Empire manufacturing survey saw a significant increase of 11.4 points to 7.7, and the Philadelphia Fed’s business outlook rose 21.4 points to 12.6, both exceeding forecasts. However, hawkish comments from Atlanta Fed President Raphael Bostic on inflation pressures pushed the 10-year T-note yield up by 3 basis points to 4.16%.
In energy markets, WTI crude oil prices dropped by over 4% amid easing geopolitical tensions in Iran, following President Trump’s signals that military action may be postponed. This multifaceted economic backdrop, both positive and negative, sets the stage for focused market activity ahead of anticipated earnings releases and the upcoming FOMC meeting.
