All major indices are moving higher driven by strong leadership from Technology (XLK) names. Stellar earnings’ report from Taiwan Semiconductor Manufacturing (TSM) are reinvigorating the AI trade, while solid bank earnings, and economic data are contributing to the broad-based strength.

Small caps, in the Russell 2000, are outperforming once again alongside the growth in cyclicals.

Eight sectors are moving higher, with Technology (XLK) being in the lead. The runner ups are Industrials (XLI) and Utilities (XLU), as AI related plays in the sectors are getting a boost.

On the other hand, Health Care (XLV) is the laggard and being pulled lower by Eli Lilly (LLY). The FDA delayed its decision on the company’s weight-loss pill until April 10^th.

OpenAI is making a push into consumer devices, robotics, and cloud computing as it plans major product expansion in the coming years.

In other news, SK Hynix is speeding up new chip fabrication to meet surging memory demand. They noted customers are pushing for multiyear supply deals as prices continue to rise.

Economic Data

The New York Manufacturing Index rose to 7.7 in January from -3.7 in December and beat forecasts of 1.

Notable Points:

• Shipments expanded to 16.3 from -5
• Inventories edged lower to -2.1 from 4
• Employment fell to -9 from -7.5
• Input price increases eased to 42.8 from 44.2
• Capital spending plans grew to 10.3 from 6.9

Additionally, the Philadelphia Manufacturing Index rose 21.4 points to 12.6 in January, beating estimates of -2.

Notable Points:

• The index for future activity dropped to 25.5 from 38.1
• The Capex index rose to 30.30 from 29.10
• Employment eased to 9.7 from 13
• New orders rose to 14.4 from 5.7
• Prices paid moderated to 46.9 from 49.3