Stock indexes are up today, with the S&P 500 (+0.49%), Dow Jones (+0.75%), and Nasdaq 100 (+1.07%) all posting gains. Chip makers lead the rally after TSMC forecasted strong sales and increased capital spending. US economic indicators show strength, with jobless claims falling and business outlook surveys exceeding expectations.

Weekly jobless claims unexpectedly fell to a 6-week low of 198,000, indicating a robust labor market. The Jan Empire manufacturing survey rose by +11.4 to 7.7, and the Jan Philadelphia Fed business outlook survey increased by +21.4 to a four-month high of 12.6. Atlanta Fed President expects inflation pressures to persist in 2026.

President Trump has no plans to fire Fed Chair Powell despite a Justice Department probe. The Supreme Court did not rule on challenges to Trump’s tariffs. Economic news and Fed updates are in focus. Q4 earnings season begins with expectations for S&P earnings growth of +8.4%. Rate cut odds at FOMC meeting are at 5%.

Overseas stock markets are mixed. Euro Stoxx 50 is up, while China’s Shanghai Composite and Japan’s Nikkei are down. T-notes are lower, with the 10-year yield up. European bond yields rise. US data shows stronger industrial production and GDP. ECB rate hike odds are minimal. Stock movers include chip makers and energy producers.

Notable stock movements include KLA Corp (+8%), Applied Materials (+7%), Penumbra (+12%), and Talen Energy (+10%) on positive news. Losers include Eli Lilly (-4%), MoonLake Immunotherapeutics (-4%), and Strategy (-3%). Earnings reports on 1/15 from Blackrock, Goldman Sachs, Morgan Stanley, and others are anticipated.

Read more at Nasdaq: Stocks Supported by Strength in Chip Makers and US Economic News