US Stocks Update
US stocks closed higher on Thursday, with chipmakers and bank stocks leading the gains, helping major indices rebound after two consecutive sessions of losses. Morgan Stanley and Goldman Sachs surged following strong quarterly earnings, while TSMC’s upbeat results revived investor confidence in artificial intelligence (AI) stocks.
TSMC jumped 4.5% after delivering another record-breaking quarter, reporting profit growth of 35%. The results reignited optimism around the resilience of AI-related demand. Chip stocks broadly advanced on the back of TSMC’s earnings, with Micron Technology, Nvidia, and AMD all posting gains. TSMC suppliers Applied Materials and Lam Research also rose. The “Magnificent Seven” tech giants all closed higher.
Geopolitical risks influenced investor sentiment earlier in the week, initially pushing oil prices higher amid rising tensions between the US and Iran, a key OPEC member, which fueled concerns over potential supply disruptions. Oil prices later eased after President Trump said he might not attack Iran.
On the economic front, data released Thursday showed a decline in US weekly jobless claims, while manufacturing outlooks in New York and Philadelphia came in well above expectations.
According to the US Department of Labor, seasonally adjusted initial jobless claims totaled 198,000 for the week ended January 10, down 9,000 from the previous week and below the Dow Jones estimate of 215,000. The four-week moving average fell to 205,000, the lowest level since January 20, 2024.
US Stocks Highlights:
US Market Watch:
Large-cap tech stocks were mixed. Nvidia rose 2.13%, Amazon gained 0.65%, Meta climbed 0.86%, while Alphabet A slipped 0.91%, Apple fell 0.67%, Tesla edged down 0.14%, and Microsoft declined 0.59%.
Most Chinese ADRs closed lower. The Nasdaq Golden Dragon China Index fell 0.6%. NetEase, Trip.com, and Youdao dropped more than 2%, JD.com slid 1.4%, Baidu fell 0.7%, and Bilibili declined 0.6%. Alibaba rose 0.6%, while Li Auto, XPeng, and NIO gained over 1%.
D Prime US Market Snapshot:
- Dow Jones rose 292.81 points (+0.60%) to 49,442.44
- Nasdaq gained 58.27 points (+0.25%) to 23,530.02
- S&P 500 added 17.87 points (+0.26%) to 6,944.47
Hong Kong Stocks
Hong Kong stocks opened higher but turned lower by midday. Tech stocks were mixed, with Kuaishou down over 2%, Xiaomi down more than 1%, while Alibaba rose over 1%.
The commercial aerospace sector rebounded, with Asia Satellite up more than 5%. Power equipment stocks outperformed, led by Dongfang Electric, which climbed over 4%. Chinese brokerage stocks broadly declined, with CICC down over 2%, while new consumption stocks weakened, as Pop Mart fell more than 4%.
D Prime Insight:
Commercial aerospace stocks rebounded after Elon Musk stated on social media that Starship launch frequency could exceed once per hour within three years, reiterating SpaceX’s long-term goal of producing 10,000 Starships annually. SpaceX has already built the massive Gigabay assembly facility to accelerate production.
In China, China Aerospace Science and Technology Corporation held its 2026 annual work conference on January 15, outlining plans to advance crewed lunar missions, deep-space exploration, and breakthroughs in reusable rocket technology, while accelerating the development of commercial spaceflight and the low-altitude economy.
Power equipment stocks also advanced. Dongfang Electric rose over 4% after reports from China Electric Power News cited the State Grid’s expectation of RMB 4 trillion in fixed-asset investment during the 15th Five-Year Plan, a 40% increase from the previous cycle, aimed at supporting high-quality development of the new power system.
D Prime Hong Kong Market Snapshot:
- Hang Seng Index fell 0.27% to 26,851.69
- Hang Seng Tech Index slipped 0.22% to 5,815.63
- China Enterprises Index declined 0.40% to 9,229.77
A50
China A-shares were broadly lower by midday. The Shanghai Composite fell 0.22%, Shenzhen Component Index declined 0.10%, ChiNext edged down 0.01%, while the Beijing Stock Exchange 50 Index rose 0.37%. Total market turnover reached RMB 2.006 trillion, up RMB 111.1 billion from the previous session.
D Prime Insight:
Sector performance showed strength in power grid equipment, semiconductor equipment, and memory chips, while AI application stocks pulled back.
D Prime A-Share Market Snapshot:
- Shanghai Composite fell 0.22% to 4,103.45
- Shenzhen Component Index slipped 0.10% to 14,293.08
- ChiNext Index edged down 0.01% to 3,367.45
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