Two sparks have set the market alight. First, TSMC, which announced higher-than-expected targets on January 18. The Taiwanese company, which is the world's leading chip producer, has awakened the market's appetite. In the same vein, American company Super Micro Computer raised its own forecasts, sending the stock up 36% over the session, pulling the whole sector along with it. Financiers believe that the increase in targets is a sign that the sector's other big players will not disappoint, starting with Nvidia, which also soared on Friday. Beware, however, of the super-bubble that could super-fart in the face of super-investors. The S&P500 semiconductor sector index gained 8.4% last week. That's three times more than the Nasdaq 100 (+2.9%). The S&P 500 reached an all-time high.

The rally on Wall Street boosted stocks in London today, with the FTSE 100 up 0.5% at 8:30 am. The UK's Financial Reporting Council confirmed the scrapping of tougher company internal controls, with listed companies having until January 2026 to show checks on internal controls for investor information accuracy. The FRC faced opposition from the London Stock Exchange and others, leading to the abandonment of tougher requirements.

Among stocks, HgCapital Trust has agreed to sell its entire stake in market intelligence provider Argus Media to Argus and General Atlantic for £52 million. The transaction is expected to be completed in February, pending regulatory approval. HgCapital Trust's shares rose by 1.17%.

Compass Group announced the acquisition of UK catering company CH&CO for an initial enterprise value of £475 million, with additional earn-out payments contingent on CH&CO's profit growth over the next two years.

This week, investors will be watching US fourth-quarter gross domestic product figures on Thursday, as well as core personal consumption expenditures on Friday. We’ll also have earnings reports from Netflix on Tuesday and Tesla on Wednesday.

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