Updates with early afternoon prices

By Medha Singh and Pranav Kashyap

Jan 15 (Reuters) - Wall Street's main indexes snapped back on Thursday, lifted by a chip-fueled surge after TSMC's blockbuster results, while investors combed through earnings from Morgan Stanley and Goldman Sachs to close the book on big banks' reporting season.

Chip stocks such as Nvidia NVDA.O rose 2.5%, while Broadcom AVGO.O and Micron MU.O gained 2.3% and 3%, respectively.

Chipmaking tool companies Applied Materials AMAT.O and KLA KLAC.O gained over 8.5% each, while Lam Research LRCX.O rose 6.3%.

The world's main producer of advanced AI chips, TSMC 2330.TW, predicted robust annual growth and flagged more U.S. manufacturing capacity was in the works. U.S.-listed shares of TSMC TSM.N jumped 7%.

The broader info-tech sector .SPLRCT rose 1.5%.

BlackRock BLK.N, the world's largest asset manager, gained 4.7% after a rally in markets lifted fee income and pushed its assets under management to a record $14.04 trillion in the fourth quarter.

Goldman Sachs GS.N and Morgan Stanley MS.N both reported a rise in quarterly profit, helped by a flurry of dealmaking. Goldman's shares rose 3.3%, while Morgan Stanley gained 4.8%.

"Stocks are reacting positively and it's because the selling pressure has already lowered the price of these recently, and it's attracted some investors back," said Robert Pavlik, senior portfolio manager at Dakota Wealth.

"All the earnings from the banks were pretty much as expected."

Financial stocks have been on the back foot this week as investors fretted over a proposed one-year cap that would limit credit-card interest rates to 10%. The concern has dragged the broader financial sector .SPSY toward its worst week since October, even as some industry heavyweights turned in stout profit growth.

At 11:22 a.m. ET, Dow Jones Industrial Average .DJI rose 371.37 points, or 0.75%, to 49,521.00, the S&P 500 .SPX gained 46.44 points, or 0.67%, to 6,973.04 and the Nasdaq Composite .IXIC gained 215.97 points, or 0.92%, to 23,688.42.

MARKETS CHURN AMID EARNINGS

Investors look to fundamentals as the earnings season kicks off, testing whether the rally still has legs.

Wall Street's heavyweights - tech and growth stocks - have lost some shine recently as investors kick off the year by chasing bargains.

Jason Bottenfield, a wealth manager at Steward Partners, said it is a pattern that often emerges at the start of the year.

"The broadening is definitely happening."

This fueled a rally where the S&P 600 mid-cap index rose over 7% and Russell 2000 .RUT gained 8%.

The equal-weighted S&P 500 <.SPXEW> has risen about 4% in January, versus an increase of just 1.8% for the S&P 500.

On the day, the energy index .SPNY eased 0.1% after a two-day rally, as oil prices tumbled. O/R

Eli Lilly's near 5% fall dragged the healthcare index .SPXHC down 1.2%.

Fitch's top sovereign analyst warned that any serious erosion of the Federal Reserve's independence would be a clear negative for the U.S. credit rating - comments that land just days after the Trump administration threatened to indict Fed Chair Jerome Powell.

Meanwhile, the Labor Department's data showed weekly jobless claims rose less than expected in the week ended January 5.

Chicago Federal Reserve President Austan Goolsbee said on CNBC that with the job market showing stability, the Fed's focus should stay on bringing inflation down, keeping the door open to cuts later this year.

Advancing issues outnumbered decliners by a 1.6-to-1 ratio on the NYSE and by a 1.26-to-1 ratio on the Nasdaq.

The S&P 500 posted 28 new 52-week highs and no new lows, while the Nasdaq Composite recorded 59 new highs and 25 new lows.

(Reporting by Medha Singh and Pranav Kashyap in Bengaluru; Editing by Shinjini Ganguli and Maju Samuel)

((medha.singh@thomsonreuters.com))