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Techs led US stock futures higher on Thursday as TSMC’s (TSM) upbeat outlook eased concerns about demand for AI chips, with the next round of earnings and retail sales on deck.
Contracts on the tech-heavy Nasdaq 100 (NQ=F) rose 0.8%, while S&P 500 futures (ES=F) added 0.4%. Dow Jones Industrial Average futures (YM=F) held near record highs as key indicators recovered to close with gains.
Contract chipmaker TSMC posted a 54% jump in quarterly profit, beating Wall Street estimates, and raised its forecast for 2024 revenue growth amid rising demand for AI. The top chipmaker’s positive outlook for Apple (AAPL) and Nvidia (NVDA) reassured a market spooked by ASML’s (ASML) gloomy sales forecasts, reviving hopes for an AI boom.
TSMC’s U.S.-listed shares rose 8% in premarket trading, helping fuel a rally in chip stocks including Arm (ARM), up 3.6%, Nvidia and Broadcom (AVGO).
On the data front, a monthly retail sales report due later could show whether the economy is accelerating again after a surprisingly strong jobs report in September. A weekly lecture on unemployment claims is also on the agenda, similarly viewed by investors debating whether the Federal Reserve will forego a rate cut in November.
After great results from the big banks, the focus is now on Big Tech earnings to wipe out the disappointments of the past quarter. After the bell, Netflix becomes the first ‘Magnificent Seven’ megacap to report, as Wall Street is wary of price hike news that could potentially send its shares soaring.