Daily Market Report – April 16, 2026

While major US indices like the S&P 500 (SP:SPX) and the Nasdaq Composite (NASDAQ:IXIC) hovered near their highs, buoyed by strong technology numbers, the performance in other sectors remained noticeably subdued. The market is becoming more selective: it is no longer breadth but rather individual, structurally strong business models that are driving prices.

At the center was the world's leading semiconductor contract manufacturer Taiwan Semiconductor Manufacturing Company (NYSE:TSM). The company reported a 58 percent increase in profits in the first quarter, significantly exceeding expectations. At the same time, the outlook was raised: for the full year, revenue growth of more than 30 percent in US dollars is now expected. Particularly noteworthy is the momentum in the high-end segment – next-generation chips now account for about a quarter of revenue. Demand continues to be significantly driven by applications in artificial intelligence, with major customers like Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL). Despite these exceptionally strong numbers, the stock dipped slightly – an indication that the market has now priced in very high expectations.

While the technology sector thus confirms its role as a growth engine, other industries are increasingly showing weakness. The healthcare company Abbott Laboratories (NYSE:ABT) lowered its annual forecast and subsequently came under significant pressure. The luxury goods company Kering (EPA:KER) continued its downward trend, as demand development – particularly for the core brand Gucci – lags behind expectations.

In contrast, companies along the semiconductor value chain continue to benefit from the investment boom. The Japanese equipment supplier Tokyo Electron (TYO:8035) saw significant gains, supported by rising investments in production capacities for high-performance chips.

Overall, a clear picture is emerging this earnings season: the market is driven by structural growth in the technology sector, while consumer-dependent and partially defensive areas are under pressure. What matters is less the absolute level of results than the question of whether companies can exceed the already high expectations. It is precisely here that a dividing line between winners and losers is increasingly becoming apparent.