Markets Overview

  • ASX SPI 200 futures little changed at 8,827.00
  • S&P 500 up 0.4% to 6,952.34
  • Dow Average up 0.7% to 49,490.82
  • FTSE 100 up 0.5% to 10,238.94
  • Euro down 0.3% to $1.1613
  • Aussie up 0.3% to 0.6701 per US$
  • Kiwi down 0.2% to 0.5741 per US$
  • US 10-year yield rose 2.6bps to 4.1576%
  • Australia 3-year bond yield fell 2.3 bps to 4.09%
  • Australia 10-year bond yield fell 3.4 bps to 4.68%
  • Gold spot down 0.3% to $4,613.06
  • Brent futures down 4.4% to $63.58/bbl

Economic Events

  • 11:00: (AU) Australia to Sell A$700 Million 3.25% 2029 Bonds on Jan. 16

Stocks rebounded as a blowout outlook from an artificial-intelligence bellwether revived hopes about the longevity of a key bull-market driver while signs of economic strength lifted small caps.

A gauge of chipmakers hit all-time highs as Taiwan Semiconductor Manufacturing Co., Asia’s most valuable company, assuaged concerns about the sustainability of current data-center spending. Nvidia Corp. jumped over 2% and ASML Holding NV notched a record. Small caps kept rising, with the Russell 2000 beating the S&P 500 for a 10th straight session — the longest streak since 1990.

“Technology stocks had looked vulnerable in recent weeks as investors rotated away from megacap names and into more cyclical areas of the market,” said Fawad Razaqzada Forex.com. “TSMC’s update, though, appears to have stabilized that ‘rotation’ rather than reversed it outright.”

That balance between tech optimism and broader participation should remain a defining feature in the weeks ahead, he noted.

A run of stronger-than-expected economic data has helped shape a growing sense that conditions are improving, with investors chasing riskier parts of the market that typically benefit in that scenario.

Bonds fell as data showed a resilient labor market, with jobless claims sliding to the lowest since November. New York state factory activity expanded, while a gauge of prices received dropped to an almost one-year low.

Several Federal Reserve officials speaking Thursday signaled a willingness to pause rate cuts at their upcoming policy meeting, citing a labor market that appears to be stabilizing and ongoing inflation pressures.

The S&P 500 rose 0.3%. A gauge of chipmakers jumped 1.8%. Also aiding sentiment was a US deal with Taiwan to cut tariffs and boost chip investment. The Russell 2000 added 0.9%. Goldman Sachs Group Inc. is raising billions in a massive bond sale after reporting solid results. Morgan Stanley’s debt bankers boosted revenue 93% in the fourth quarter.

The yield on 10-year Treasuries rose four basis points to 4.17%. The dollar wavered. Oil sank as President Donald Trump signaled he may hold off on attacking Iran for now. Silver slid after a blistering rally and as the US refrained from imposing import tariffs on critical minerals.