Wall Street had a bit of a bounce back today. Honestly, after a couple of days of red on the screen, seeing the S&P 500 and the Nasdaq shake off the cobwebs feels like a collective exhale for anyone checking their 401(k). If you’re wondering why is the stock market up today, it isn’t just one thing. It’s a mix of a massive win for AI, some surprisingly sturdy economic data, and—believe it or not—a weirdly calming bit of news from the geopolitical front.
Basically, the tech sector decided it wasn't done with the bull run yet.
The Taiwan Semi Spark
The biggest catalyst today started thousands of miles away. Taiwan Semiconductor Manufacturing Co. (TSMC) dropped its earnings, and to say they "beat expectations" is an understatement. They basically crushed them. The company reported a 35% jump in profit and, perhaps more importantly, announced they are hiking their capital spending to somewhere between $52 billion and $56 billion for the year.
That is a lot of money.
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When the world’s biggest chipmaker says they need to spend more to keep up with demand, it sends a massive signal to the rest of the market. It tells investors that the AI boom isn't some fading trend. It’s a structural shift that’s still accelerating. Because of this, Nvidia, Broadcom, and AMD all saw a nice lift today. When the semiconductor "royalty" moves up, the rest of the tech-heavy Nasdaq usually follows.
Jobs and Manufacturing: The "Not Too Hot" Economy
We also got some fresh data from the Labor Department and the Fed. Weekly jobless claims fell to 198,000. That’s a sub-200K number, which is pretty rare and shows the labor market is still incredibly tight. Normally, a strong labor market makes people worry about inflation, but there’s a nuance here.
At the same time, the Philly Fed and Empire State manufacturing surveys came in much stronger than anyone thought. It’s a "Goldilocks" situation. The economy looks strong enough to avoid a recession, but not so overheated that it’s forcing the Federal Reserve to hike rates back up.
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- Initial Jobless Claims: 198,000 (Expectation: 215,000)
- Philly Fed Index: +12.6 (Expectation: -4.5)
- TSMC Capex Guidance: Up to $56 Billion
Energy and Easing Tensions
There’s also been a huge move in oil prices. Crude dropped over 4% today, slipping under $60 a barrel. Why? President Trump made some comments suggesting that tensions with Iran might be cooling off—specifically mentioning he’d heard that planned executions in the country had stopped.
Whether that holds or not, the market took it as a sign that we aren't headed for an immediate military escalation that would blow up oil prices. Lower energy costs are like an unannounced tax cut for both consumers and businesses. It’s a big reason why sectors like industrials and materials are finding some green today too.
Banking Giants Join the Party
While the big tech names were grabbing the headlines, the "Big Banks" were doing some heavy lifting of their own. Goldman Sachs and Morgan Stanley both reported double-digit profit growth. Goldman, in particular, saw a massive boost from its equities trading and wealth management divisions.
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They even hiked their dividend.
It's a contrast to earlier in the week when some of the more "consumer-facing" banks like JPMorgan and BofA saw their stocks dip after mixed reports. It seems like the "Wall Street" side of banking is doing better than the "Main Street" side right now, mostly because of the flurry of deal-making and the surging market itself.
Why is the stock market up today?
If you're looking for the TL;DR version, it's a combination of AI optimism, robust labor data, and cheaper energy. Investors are betting that the combination of corporate earnings growth and a resilient U.S. consumer will be enough to keep the momentum going into the spring.
We saw the S&P 500 break its two-day losing streak, and the Russell 2000—which tracks smaller companies—actually outperformed the big guys for a change, jumping more than 1%. That’s a sign that the rally is broadening out. People aren't just buying Nvidia; they're starting to look at the rest of the market again.
Actionable Insights for Investors
- Don't ignore the bond market. The 10-year Treasury yield ticked up to 4.16% today. If that keeps climbing, it could start to put pressure on tech stocks again, no matter how good the earnings are.
- Watch the $60 mark on oil. If WTI crude stays below $60, it’s a massive tailwind for airlines, shipping, and consumer discretionary stocks.
- Focus on capex. When companies like TSMC announce huge spending increases, follow the money. Look at the equipment makers like ASML and Applied Materials that provide the tools for those expansions.
Keep an eye on the Friday retail sales data coming up tomorrow. That will be the final piece of the puzzle for this week to see if the consumer is actually spending that "cheaper gas" money or if they're starting to hunker down.