Overnight US stocks | TSMC's financial report acts as a "shot in the arm" for the market. Three major indexes rose, with the chip and banking sectors leading the way.

On Thursday, the three major indexes closed higher, with the gains narrowing compared to the early session. The semiconductor and banking sectors led the gains, as the financial report released by Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR boosted market confidence in the resilience of AI demand. According to data from the U.S. Treasury Department, Japan held $1.203 trillion in U.S. Treasury bonds in November, up from $1.200 trillion in October. The UK held $889 billion in U.S. Treasury bonds in November, up from $878 billion in October. China held $683 billion in U.S. Treasury bonds in November, down from $689 billion in October. [Stocks] At the close, the Dow Jones Industrial Average rose 292.81 points, or 0.6%, to 49,442.44 points; the Nasdaq rose 58.27 points, or 0.25%, to 23,530.02 points; and the S&P 500 rose 17.87 points, or 0.26%, to 6,944.47 points. BlackRock, Inc.(BLK.US) rose 6%, Morgan Stanley(MS.US) rose 5.8%, Goldman Sachs Group, Inc.(GS.US) rose 4.6%, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR(TSM.US) rose 4.44%, and NVIDIA Corporation(NVDA.US) rose 2%. The Nasdaq Golden Dragon Index fell 0.6%, while Hesai(HSAI.US) rose over 7%. [European Stocks] The German DAX30 index rose 46.15 points, or 0.18%, to 25,361.02 points; the UK FTSE 100 index rose 50.11 points, or 0.49%, to 10,234.46 points; the French CAC40 index fell 17.85 points, or 0.21%, to 8,313.12 points; the Euro STOXX 50 index rose 36.10 points, or 0.60%, to 6,041.15 points; the Spanish IBEX35 index fell 63.52 points, or 0.36%, to 17,632.18 points; and the Italian FTSE MIB index rose 170.10 points, or 0.37%, to 45,817.50 points. [Cryptocurrency] Bitcoin fell over 1.4% to $95,563, while Ethereum fell over 1.6% to $3,298.18. [Dollar Index] The U.S. dollar index, measuring the dollar against six major currencies, rose 0.19% to close at 99.323 in the forex market. At the close of the New York forex market, 1 euro exchanged for $1.1614, lower than the previous trading day's $1.1636; 1 pound exchanged for $1.3386, lower than the previous trading day's $1.3431. 1 dollar exchanged for 158.54 yen, higher than the previous trading day's 158.50 yen; 1 dollar exchanged for 0.8031 Swiss francs, higher than the previous trading day's 0.8004 Swiss francs; 1 dollar exchanged for 1.3893 Canadian dollars, higher than the previous trading day's 1.3874 Canadian dollars; 1 dollar exchanged for 9.2263 Swedish Krona, higher than the previous trading day's 9.2073 Swedish Krona. [Metals] Spot gold fell 0.22% to $4,615.72, while spot silver initially fell 7.3% before closing slightly lower at $92.428. Trump did not impose tariffs on key mineral imports, including silver and platinum, and has proposed setting price floors through bilateral negotiations. Concerns about increased tariffs led to the stockpiling of some metals, including silver, in U.S. warehouses. Currently, warehouses related to futures trading on the New York Commodities Exchange hold about 434 million ounces of silver, an increase of about 100 million ounces from the trade disruption caused by tariffs about a year ago. While these stocks may help alleviate other tensions, StoneX Group analyst Rhona O'Connell pointed out that silver leaving the US could face some obstacles as it remains on Trump's key mineral list. Christopher Wong, a strategist at Oversea-Chinese Banking Corporation, stated that silver's medium-term outlook remains positive, supported by supply shortages, industrial consumption, and spill-over effects from gold demand. However, the recent speed of price fluctuations makes it necessary to remain cautious in the short term. [Oil] Oil prices fell over 4% as comments from U.S. President Trump eased speculation that the US may soon launch attacks on Iran. Brent crude futures fell $2.76, or 4.15%, to $63.76 per barrel, while New York Mercantile Exchange February West Texas Intermediate (WTI) futures fell $2.83, or 4.56%, to $59.19 per barrel. [Macro News] Mortgage rates fall to three-year lows as Trump's $200 billion bond purchase plan begins to take effect. Data released by Fannie Mae shows that the average rate for a 30-year fixed-rate mortgage is 6.06%, lower than last week's 6.16%, hitting a new low since September 2022. This is also the last time rates were below 6%. Lowering the cost of loans is a core goal of Trump's plan to increase housing affordability. Following his announcement of a $200 billion mortgage bond purchase plan last week, rates have declined. Persistently high rates have kept potential buyers and sellers on the sidelines for years. In some ways, things are improving for buyers: inventory is slightly increasing, home price increases are slowing, and rates have come down from around 7% in early 2025. However, many housing experts point out that significant reductions in mortgage costs are necessary to truly break the market deadlock. This is because few homeowners with low-rate mortgages are willing to sell and take on higher rates to buy new homes. Fed's Schmid advocates for maintaining restrictive rates, warns that easing rates will not solve labor force structural problems. Fed's Schmid said: Rates should be maintained at a level that continues to pressure the economy, allowing inflation to further cool down. Given that inflation pressures are still evident, I lean towards keeping monetary policy moderately restrictive. He emphasized: Although the labor market has cooled down, some level of cooling may be necessary to prevent a deterioration in inflation prospects. Schmid reiterated on Thursday that further rate cuts may not stimulate hiring and asserted that the slowdown in growth is driven by structural factors, making the Fed best suited to provide assistance during cyclical downturns. Schmid said: "I do not believe that further rate cuts can effectively repair the cracks in the labor market these pressures are likely caused by structural changes in technology and immigration policies. I am concerned that rate cuts will have a more lasting impact on inflation, as our commitment to the 2% target is increasingly being questioned." Hassett: If heading the Fed, capable of convincing colleagues. Top candidate for the next Federal Reserve Chairman, Hassett, denied concerns from some quarters that, if appointed, he would have difficulty convincing other Fed officials to support his views. Hassett stated on Thursday: I'm tough enough to win debates. Anyone who comes to the White House and faces all the questions that can be asked for five years in a row like me is tough enough to deal with a hostile situation and help people understand why they are right or wrong. Hassett has consistently argued that the Fed under Chairman Powell and his colleagues have cut rates too slowly, aligning closely with Trump's views. Fed watchers note that rate decisions depend on the majority vote of the Federal Open Market Committee, and a nominated Chair may not necessarily be able to rally consensus on substantial rate cuts. Hassett reiterated that Trump believes the Fed has had a political bias under Powell's leadership, cutting rates before the 2024 election but halting the easing cycle after Trump took office in 2025. "He thinks they have sometimes made decisions that look partisan." [Stock News] Goldman Sachs Group, Inc.(GS.US) and Morgan Stanley(MS.US) set revenue records as traditional investment banks dominate stock trading. Financial reports released by Goldman Sachs Group, Inc. and Morgan Stanley showed that both firms' stock trading divisions achieved record revenues last year. The suspense now lies in whether the industry has reached its peak. Data shows that Bank of America Corp made a staggering amount of money in the stock market. Just Goldman Sachs Group, Inc. alone made $16.5 billion in revenue from its stock business, an increase of $3 billion from 2024. This figure is slightly lower than the total stock business revenue of $17.1 billion for the four major European banks in 2024. Last year, Morgan Stanley's stock business grew by 28% to $15.6 billion, also setting a record. JPMorgan Chase reported the most robust revenue growth, up 29% from 2024, while Bank of America Corp and Citigroup also experienced solid growth. Shale oil giants join forces Coterra Energy(CTRA.US) to merge with Devon Energy Corporation(DVN.US). According to sources, U.S. Coterra Energy is exploring a merger with Devon Energy Corporation. The potential combination of these two shale oil exploration companies would be one of the largest oil and gas transactions in years. The sources revealed that both companies have significant positions in the oil-rich Permian Basin and are currently in discussions about a possible merger. They disclosed that one option currently being discussed is an all-stock transaction. Coterra Energy's stock price rose by 12% at one point. Sources stated that the two companies are still negotiating the terms and structure of the potential deal. It is not yet certain whether an agreement will be reached, and other bidders may emerge. Some sources also revealed that Coterra Energy has recently engaged in merger talks with at least one other company. [Rating Updates] Citi: Raises target price for Micron Technology, Inc.(MU.US) from $330 to $385, maintains buy rating; lowers target price for Li Auto, Inc. Sponsored ADR Class A(LI.US) from $20.2 to $18.5, maintains neutral rating.