Market Roundup: What Happened Yesterday and What Awaits Us Today (January 16)

Wall Street rebounds after a wave of losses… and markets anticipate further volatility as oil prices decline and earnings season continues.

Major U.S. stock indexes ended Thursday’s session firmly higher after two consecutive days of losses, supported by a rebound in risk appetite across markets.

The Dow Jones Industrial Average rose around 0.6%, adding nearly 300 points. The Nasdaq Composite and the S&P 500 each advanced by about 0.3%, reflecting a modest recovery in investor sentiment following a recent bout of volatility.

Technology stocks led the gains, driven by a strong performance from Taiwan Semiconductor Manufacturing Company, which reported a 35% year-on-year increase in fourth-quarter profits. The results sent TSMC’s U.S.-listed shares up 4.5%. Shares of Dutch chip-equipment maker ASML also jumped roughly 5.4%, benefiting from its close commercial ties with TSMC.

In a related development, the U.S. Department of Commerce announced that the United States and Taiwan had reached a trade agreement under which Taiwanese technology and semiconductor firms will invest at least $250 billion to expand production capacity in the U.S., including the construction of new chip manufacturing facilities. In return, Washington committed to keeping tariffs on Taiwanese goods below 15%, providing further support to the sector.

Energy markets moved sharply lower as geopolitical tensions eased. West Texas Intermediate crude futures fell around 5%, settling below $59 a barrel, after President Donald Trump softened his tone on the possibility of a military strike against Iran, following tougher remarks earlier in the week.

In bond markets, the yield on the 10-year U.S. Treasury climbed above 4.17%, up from around 4.14% in the previous session. The move followed weekly jobless claims data showing new claims falling to 198,000, below expectations and reinforcing confidence in the strength of the U.S. labour market.

Earlier in the week, markets had been weighed down by the start of the bank earnings season. JPMorgan Chase shares fell roughly 5% over two sessions despite reporting quarterly results, while Citigroup, Bank of America, and Wells Fargo also declined sharply. By contrast, BlackRock, Morgan Stanley, and Goldman Sachs posted gains of more than 4% after delivering earnings that beat expectations.

In technology, Nvidia shares rebounded 2.1% after losses in the prior session, despite new U.S. security requirements governing exports of advanced H200 chips to China.

In metals markets, gold futures slipped 0.6% to $4,610 an ounce after reaching a record high a day earlier. Silver briefly touched a new all-time high of $93.75 before paring gains to trade near $91.75.

In digital assets, Bitcoin retreated to around $95,100 after hitting an intraday high of $97,700. The U.S. dollar index rose 0.3% to 99.38, supported by higher bond yields.

Market Outlook

Global markets are expected to remain volatile today as investors continue to monitor geopolitical developments in the Middle East, alongside further U.S. earnings reports, particularly from the technology and financial sectors. Movements in bond yields and upcoming U.S. economic data are also likely to influence sentiment, while oil prices may remain highly sensitive to political statements and sudden developments.