US stock markets experienced significant momentum, driven by small-cap indexes reaching new records, robust gains in chip stocks following a strong earnings report from Taiwan Semiconductor Manufacturing Co. (TSMC), and silver futures hitting a record high of $93 per ounce.
Market Summary
Small-Cap Performance
Small-cap stocks continued their rally, with indexes like the Russell 2000 and the Dow Jones U.S. Small-Cap Total Stock Market Index advancing and setting new record highs. This outperformance is attributed to strong U.S. economic data, which benefits smaller, domestically focused companies more directly than multinational corporations.
Chip Stock Rally
The semiconductor sector saw substantial gains after TSMC reported stronger-than-expected fourth-quarter results and provided an upbeat outlook, driven by continued demand for AI and high-performance computing chips. Major chip-related companies experienced notable jumps in share prices:
TSMC shares surged over 4%, reaching a new record high.
Nvidia and AMD both gained around 2% each.
Chip equipment makers like ASML, Applied Materials, and Lam Research also saw significant increases.
Adding to the positive sentiment, a new U.S.-Taiwan trade agreement was announced, involving a commitment of at least $250 billion in investments in U.S. chip production capacity and an exemption from new tariffs for imported chips used in U.S. supply chains.
Silver's Record High
Silver futures reached a new all-time record, climbing to $93 per ounce on January 16, 2026. This rally in metals, including gold and copper which also saw gains earlier in the week, reflects broad investor interest in commodities amidst upbeat market sentiment and a significant drop in the gold-to-silver ratio.
Key Insights
AI Optimism: The strong performance in the tech sector, specifically semiconductors, is largely fueled by optimism surrounding artificial intelligence and solid corporate earnings that defy some geopolitical concerns.
Economic Strength: The rallying small caps point to investor confidence in the underlying strength of the U.S. economy, as indicated by robust manufacturing data and low jobless claims reports.
Market Volatility: Despite the positive takeaways, the market has navigated a volatile week, with gains in the main indexes fading on some days. Active management is expected to be key in navigating these fluctuations throughout the year.
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