Wall Street Rises at the Open on AI-Chip Tailwinds

TSMC’s AI Blast and Resilient U.S. Spending Set the Tone as Wall Street Opens

U.S. stocks opened higher Thursday, with the Dow at 46,365.5 (+112.21, +0.24%), the S&P 500 at 6,693.18 (+22.12, +0.33%), and the Nasdaq at 22,765.2 (+95.15, +0.42%); the Russell 2000 also ticked up to 251.03 (+0.28%), as chip makers and bank shares stayed in early focus following TSMC’s upbeat outlook and BNY Mellon’s results.

The day’s marquee catalyst is Taiwan Semiconductor Manufacturing. The foundry posted record third-quarter revenue of $33.1 billion and EPS of $2.92, while gross margin rose to 59.5%, powered by advanced nodes accounting for 74% of wafer revenue. Management lifted its 2025 growth outlook to the mid-30s and said AI demand is “even stronger than three months ago.” Advanced packaging—vital for high-end AI accelerators—now contributes close to 10% of revenue and remains capacity-constrained into 2026, a backdrop that typically supports pricing and margins. Needham responded by raising its price target to $360 and keeping a Buy rating, underscoring how leadership at the leading edge can ripple across the AI supply chain.

U.S. consumers are eating outside the home more than you may know. Chief Economist at Apollo Global Management, citing BEA data, notes that households now spend almost as much on food away from home as on groceries. That tilt toward services tends to cushion overall consumption even when goods demand cools, and it can influence inflation dynamics because restaurant prices reflect both food and labor costs.

Financials add a second pillar. Bank of New York Mellon reported EPS of $1.88, beating the $1.77 consensus, on $5.081 billion in revenue. Fee businesses grew 7% year over year, while net interest income rose 18% as the net interest margin widened to 1.31%. Kenneth Leon, equity analyst at CFRA Research, wrote that “the strong performance across both fee-based and interest-sensitive revenue streams highlights the company's diversified business model and execution capabilities…,” adding that disciplined execution positions BK well for sustained performance.

On the consumer front, Bank of America Institute data show household card spending up 2.0% year over year in September, an acceleration from 1.7% in August, with seasonally adjusted spending up 0.2% month over month for a fourth straight gain. Lower-income cohorts are recovering but remain softer than middle- and higher-income groups; the latter appear to benefit from wealth effects when equities rise.

Commodities are mixed into the open, with gold higher and crude oil modestly firmer in early trading, a setup that could shape sector rotations once the cash market steadies.