GoAI Market Wrap - 16th Jan

Stock Market

On Thursday, Eastern Time, the three major U.S. stock indices closed higher collectively. Morgan Stanley and Goldman Sachs saw their share prices surge following the release of strong quarterly results, while TSMC’s stellar earnings report reignited investor confidence in Artificial Intelligence (AI) stocks.

 

Earlier this week, mixed results from other banks had weighed on the financial sector. Markets were also concerned about a one-year policy proposal from President Trump to cap credit card interest rates at 10%.

 

However, financial stocks staged a sharp reversal following earnings from Morgan Stanley and Goldman Sachs that far exceeded market expectations. Morgan Stanley jumped 5.8%, while Goldman Sachs rose 4.6%. Additionally, BlackRock, the world’s largest asset manager, surged 5.9% as its fourth-quarter assets under management (AUM) climbed to a record $14.04 trillion.

 

Jake Dollarhide, CEO of Longbow, commented that investors are still buying stocks that are undervalued relative to tech. "In this market, it has been 'buy growth and tech or be out,' but today, banks and traditional industrials performed just as well."

 

TSMC, the world’s leading advanced AI chipmaker, posted robust Q4 earnings and an optimistic outlook, stating that its capital expenditure for the year could rise to $56 billion to capture opportunities in the AI wave. Its stock climbed 4.4%, boosting peers like Nvidia, Broadcom, and Applied Materials, and driving semiconductor indices significantly higher.

 

Alan Lancz, President of Alan B. Lancz & Associates, noted: "There were concerns that tech valuations were a bit ahead of the fundamentals, but the news from TSMC essentially dismissed those worries."

 

Kim Forrest, Chief Investment Officer at Bokeh Capital Partners, added: "TSMC’s results, and more importantly its CapEx plan, sent a reassuring signal to investors—the current AI run is not necessarily a bubble; companies are committing massive capital to expand capacity."

 

Latest economic data showed the U.S. labor market remains resilient. For the week ending January 10, initial jobless claims fell to 198,000, lower than the 215,000 expected by economists.

Global Markets

White House: Trump Team Monitoring Iran Closely

 

White House Press Secretary Leavitt stated that President Trump and his team are closely monitoring the situation in Iran and keeping all options on the table. Trump reportedly spoke with Israeli Prime Minister Netanyahu, though details remain confidential.

 

Trump has temporarily deferred a decision on military strikes, though sources indicate the military option remains "on the table."

 

U.S. Treasury Announces New Iran Sanctions

 

The U.S. Treasury Department announced sanctions on Thursday against multiple Iranian individuals, entities, and foreign companies linked to Iran.

 

IMF Chief Backs Fed Chair Powell, Stresses Central Bank Independence

 

IMF Managing Director Kristalina Georgieva emphasized that central bank independence is vital for the economy, publicly supporting Fed Chair Jerome Powell amid investigations by the Trump administration. She praised Powell’s professionalism and high standing among international peers.

 

China Trims U.S. Treasury Holdings in November; Japan Increases

 

Treasury data shows Japan's holdings rose to $1.203 trillion in November, while China’s holdings decreased to $683 billion.

Company News

Rio Tinto to Supply Copper for Amazon’s AI Data Centers

 

Mining giant Rio Tinto will supply copper extracted via leaching technology from its Arizona mine to Amazon for use in AI data centers.

 

Critical Metals Plans Rare Earth Plant in Saudi Arabia

 

Critical Metals signed a non-binding agreement with Saudi group TQB for a 50:50 joint venture to build a $1.5 billion rare earth processing plant.

 

Goldman Sachs to Raise Record $16 Billion via Bond Offering

 

Following its blockbuster earnings, Goldman Sachs is set to raise $16 billion through an investment-grade bond sale—the largest ever for a Wall Street bank.

Forex & Commodities

International oil prices fell on January 15.

 

WTI Crude: Settled down $2.71 (4.38%) at $59.17 per barrel.

 

COMEX Gold: Fell $15.20 (0.33%) to $4,620.50/oz.

 

US Dollar Index (DXY): Rose 0.19% to close at 99.323.

Key Event

Silver Surges 80% in 50 Days

 

Silver prices hit new highs, breaking $90/oz this week. The gold-to-silver ratio dropped to 50.57, its lowest in 13 years, signaling silver’s extreme outperformance.

Cryptocurrency

Bitcoin (BTC): $95,583.63 (-1.22%).

 

Ethereum (ETH): $3,314.69 (-0.63%).

 

XRP (-2.38%), BNB (-0.90%), Solana (-2.48%), Dogecoin (-4.00%).

Market Sentiment

The Crypto Fear & Greed Index climbed to 61 (Greed) for the first time since last October, marking a significant reversal from recent "Extreme Fear" as Bitcoin tests two-month highs.