What market trends are emerging for tech stocks in January 2026?
Public.com presents The Rundown, your daily market update in under 10 minutes. My name is Zaid Admani, and today is Thursday, January 15th. In today's episode, we'll recap earnings from TSMC and tell you what it means for the AI trade. We'll also tell you why investment banks are having a big quarter.
Then stick around to the end of the show to find out why Tesla will stop selling their FSD software. We got a great show for you today. Let's go. Stocks had their second red day in a row on Wednesday with the S&P 500 dropping 0.5%. Well, the Nasdaq lost more than 1%. It was the worst day of the year so far for the Nasdaq. And once again, this sell-off was mostly concentrated in tech stocks.
Every single magnificent seven stock was down yesterday. In fact, yesterday was one of those days where more than 310 stocks in the S&P actually closed higher, but the index still fell because the mega cap tech names carry so much weight. Remember the S&P 500 and NASDAQ are market cap weighted indices. So the larger the company is, the more impact it has on the index.
Now, some on Wall Street are calling this the return of the S&P 493. So instead of the market being carried by a handful of AI and mega cap tech names, money is finally rotating into the rest of the market. The best example of that are small cap stocks.
The Russell 2000, which tracks smaller companies, finished in the green yesterday and is now up nearly 7% on the year, massively outperforming the Nasdaq so far in 2026. Now, I don't think this is a reason to panic or anything. Market rotations happen. And honestly, I think it's a good and healthy thing that the market is starting to broaden out a bit.
That said, if big tech names continue to struggle, the major indices could have a hard time rallying. We'll see how long the weakness in the tech sector lasts. Many of the big tech names will start reporting earnings in a couple of weeks. So maybe those earnings could spark a rally. We'll have to see how it all plays out.
I mean, it does feel weird being a tech investor and underperforming the market because that hasn't happened in a long time. But yeah, we'll be breaking down the earnings in a couple of weeks. So if you're new here, make sure you're subscribed to the podcast and tuning in every day to stay in the loop. Let's run through some headlines, starting with TSMC. TSMC
TSMC is the world's largest chip maker, one of the most important companies in the world, and they just reported earnings and delivered a record quarter with profits jumping 35%. That now marks eight straight quarters of year over year profit growth, which is incredible. Revenue also beat expectations, rising 20%, and the outlook is what really caught investors' attention.
TSMC says it expects 2026 revenue growth of nearly 30%, which is even stronger than what Wall Street was forecasting. So that's a pretty big signal that the AI boom still has plenty of fuel left in the tank. A big chunk of TSMC's growth right now is coming from high-performance computing, which includes AI chips and advanced 5G applications.
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