US stock futures are on the rise on Thursday, with investors eyeing a tech-led comeback following upbeat results from TSMC (TSM) that have lifted hopes for artificial intelligence (AI) technology. Futures on the S&P 500 and the Dow Jones Industrial Average are up about 0.2%, while Nasdaq 100 futures have also added 0.2% after a recent decline in tech stocks.
The market has been grappling with concerns about inflation and the possibility of the Federal Reserve easing back on interest rate cuts. As a result, corporate earnings have taken center stage as investors closely monitor how well companies are performing against high expectations.
TSMC’s strong results, which highlighted a growing demand for AI technology, have reignited optimism for chip and tech stocks. The company’s quarterly profit beat has boosted confidence in the industry, leading to a positive outlook for tech stocks moving forward.
The focus now shifts to Netflix, as the streaming giant prepares to release its financial update later on Thursday. This will be a key test for tech stocks, including the “Magnificent” group of companies, as they continue to play a significant role in driving market growth.
Meanwhile, the market is also keeping an eye on the debate surrounding potential interest rate cuts by the Federal Reserve. Policymakers, including John Williams and Raphael Bostic, are scheduled to make appearances on Thursday, adding to the ongoing discussion about the state of the economy.
In other news, initial jobless claims for the week ending April 13 came in below expectations, providing some positive news for the labor market. US bond yields have continued to ease from recent highs, offering some relief for stocks as the 10-year Treasury yield remains steady.
Overall, the market is showing signs of resilience despite ongoing challenges, with investors remaining cautiously optimistic about the future. Stay tuned for more updates as the day unfolds.
