16th January 2026 – Chip stocks lead market higher as Trump “confident” on Greenland
Investors bought the recent dip in chip stocks sparking a boarder tech revival, helping stocks break a 2 day losing streak as President Trump said he was “confident” he can come to a deal with Denmark on Greenland after talks
WATCH ON YOUTUBE MPC Morning Call 16 th January 2026 – Chip stocks lead market higher as Trump “confident” on Greenland Investors bought the recent dip in chip stocks sparking a boarder tech revival, helping stocks break a 2 day losing streak as President Trump said he was “confident” he can come to a deal with Denmark on Greenland after talks Chip stocks rallied as investors bought into the recent market dip, supported by Taiwan Semiconductor Manufacturing Co.’s stronger-than-expected fourth-quarter results. The world’s largest chipmaker benefited from robust AI-driven demand for its advanced processors, reinforcing optimism for the broader semiconductor industry despite newly imposed 25% tariffs on certain advanced chips by President Trump. The duties are expected to have limited impact due to many producers’ U.S.-based facilities. Geopolitical developments also shaped market sentiment. President Trump expressed confidence about reaching an agreement regarding Greenland after meetings among U.S., Danish, and Greenlandic officials, though Denmark’s foreign minister maintained that key disagreements remain. Tensions with Iran eased, with Trump downplaying the likelihood of major violence or U.S. intervention, after earlier threats to act in support of Iranian protesters. Meanwhile, Trump confirmed he has “no plan” to fire Federal Reserve Chair Jerome Powell despite a Justice Department probe, easing fears of political interference in monetary policy. Economic data showed initial U.S. jobless claims unexpectedly fell to 198,000, suggesting a resilient labor market even as hiring slows. Fed officials, including Kansas City Fed President Jeff Schmid, signaled a likely pause in rate changes at the upcoming policy meeting. Elsewhere, crypto-related stocks like MicroStrategy and Coinbase fell after the Senate delayed voting on the Clarity Act due to industry opposition. Banks such as Morgan Stanley and Goldman Sachs posted strong profits from dealmaking and trading, while oil prices dropped 4% as Trump’s tempered tone on Iran reduced concerns of supply disruptions.. Corporate Earnings Taiwan Semiconductor Manufacturing Co. (TSMC) +5% rose over 5% after the company reported stronger-than-expected fourth-quarter profits, driven by booming demand for artificial intelligence chips. Net profit hit a record T$505.74 billion (US$16 billion), surpassing estimates, while revenue rose to T$1.046 trillion (US$33 billion). Despite the strong results, TSMC projected significantly higher capital spending for 2026—between US$52 billion and US$56 billion, up from US$40.9 billion in 2025—to expand capacity for AI chips, particularly overseas. Executives cautioned that margins could weaken amid these investments. The company’s 3-nanometer processors contributed over a quarter of wafer revenue, with growing demand from Apple and Nvidia fueling results. TSMC also aims to expand its U.S. presence, targeting 20–30% of total output from its Arizona facilities. Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8821 (-0.15%) The Day Ahead: The market will finish the week with a quiet session. Tech and Banking may see a recovery following Wall Streets lead The day ahead No Data
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