US Stocks Slightly Fluctuate as Chip Stocks Benefit from AI Spending Optimism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
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Should l Buy ?
Source: NASDAQ.COM
- Chip Stocks Rally: Chip manufacturers and data storage companies see stock prices rise due to optimism around AI spending, with Micron Technology (MU) leading gains in the S&P 500 and Nasdaq 100, up over 7% after TSMC raised its 2026 capital expenditure forecast.
- Manufacturing Strength: US manufacturing production unexpectedly rose by 0.2% in December, surpassing expectations of a 0.1% decline, while November's figure was revised up to 0.3%, indicating economic resilience that boosts market confidence.
- Positive Earnings Season: In the first full week of Q4 earnings season, 89% of the 28 S&P 500 companies that reported exceeded expectations, with Bloomberg Intelligence forecasting an 8.4% earnings growth for the S&P 500 in Q4, further enhancing market optimism.
- Interest Rate Impact: Despite the stock market's gains, the 10-year T-note yield has risen to 4.19%, limiting upside potential for stocks, with the market pricing only a 5% chance of a 25 bp rate cut at the upcoming FOMC meeting on January 27-28.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
