Wall Street's Strong Comeback
The stock market staged a solid rebound on January 15, 2026, snapping a two-day losing streak. Fueled by powerful gains in semiconductors and banks, major indices climbed as investor confidence returned amid AI optimism and positive earnings.
Sharp Recovery in Major Indices
After recent dips from political news and bank results, the Dow Jones rose over 400 points (0.8%), the S&P 500 gained 0.6-0.7%, and the Nasdaq jumped nearly 0.9-1%. This rebound erased prior losses and pushed indices toward fresh highs.
Semiconductor Sector Leads the Charge
Taiwan Semiconductor (TSMC) reported a record quarter with 35% profit growth and plans to spend
$52-56 billion in 2026
on AI chip production. This boosted TSMC shares over 6%, Nvidia, Micron, and the VanEck Semiconductor ETF by 2-6%.
Banks Add Momentum
Strong earnings from Goldman Sachs, Morgan Stanley, and others helped financial stocks rally, broadening the rebound beyond tech and supporting overall market gains.
AI Demand Drives Optimism
TSMC's upbeat outlook si
gnals sustained AI boom, with revenue expected to rise nearly 30% in 2026. This fuels hopes for continued tech growth and broader market participation.
Outlook and Cautions
Analysts see the S&P 500 potentially reaching 7,500-8,000 by year-end 2026, backed by earnings and AI investments. Risks like geopolitics or volatility persist, but the rebound shows renewed
