Wall Street Gains as Bank and Chipmaker Stocks Rise

U.S. stocks increased after positive earnings from Morgan Stanley, Goldman Sachs, and TSMC. Notably, financial and chipmaker shares rose, with tech seeing a modest increase. Concerns over valuation and a credit-card interest cap persist but investor interest in undervalued stocks grows.

U.S. stocks saw a notable uptick on Thursday, with shares of Morgan Stanley and Goldman Sachs leading the charge due to upbeat quarterly earnings. Thanks to an active dealmaking quarter, Goldman Sachs shares soared by 4.6%, while Morgan Stanley's shares climbed 5.8%.

The tech sector, specifically chipmakers, also experienced gains after TSMC reported strong results and forecast significant growth. U.S.-listed shares of TSMC surged 4.4%, propelling other semiconductor stocks upwards. The Dow Jones, S&P 500, and Nasdaq all recorded modest increases.

Market analysts noted a renewed investor interest in undervalued stocks, as richly valued tech stocks lost some momentum. However, positive news from chipmakers eased concerns about tech valuations. The fourth-quarter U.S. earnings season continues as various companies prepare to release their reports next week.