US stock futures saw a notable increase on Thursday, indicating a potential rebound from consecutive losses as TSMC’s optimistic forecast ignited renewed enthusiasm for artificial intelligence (AI) investments amid anticipation of forthcoming major bank earnings. Futures linked to the tech-heavy Nasdaq 100 surged 0.8%, leading the uptrend, while those for the S&P 500 climbed approximately 0.4%. The Dow Jones Industrial Average also saw a marginal gain of 0.1% following two days of declines.
The boost came on the heels of a robust performance from Taiwan Semiconductor Manufacturing Company (TSMC), the largest contract chipmaker globally, which reported a 35% rise in profits for the fourth quarter, attributed largely to the AI-driven market. The company, a key supplier for giants like Nvidia and Apple, revealed plans to increase investments to $56 billion by 2026, signaling confidence in ongoing corporate spending on AI technologies. As a result, TSMC’s shares surged, propelling a rally in related chip stocks, including ASML.
This upbeat sentiment marked a significant turnaround from the previous day when technology stocks had largely driven the market lower, fostering fears of a prolonged shift from large-cap stocks into value names.
In another development that further supported market optimism, oil prices experienced a decline amid indications that the US might refrain from military action in Iran. President Trump suggested that he had received assurances from authorities that violent crackdowns on protesters would cease.
Silver prices also retreated, halting a record-setting rally that had pushed its total market value above $5 trillion for the first time. This decline followed Trump’s announcement that the US would postpone imposing tariffs on critical minerals—a move that had previously generated concerns about inventory pressures and supply constraints.
Looking forward, investors are keenly awaiting a new wave of earnings reports, with results from leading banks including Goldman Sachs, Morgan Stanley, and BlackRock anticipated before the market opens. Additionally, updates on weekly jobless claims are expected, providing further economic insights.
In corporate news, BlackRock’s stock rose nearly 2% in premarket trading, following the asset manager’s announcement that it attracted $342 billion in client cash during Q4, pushing its total assets to a record $14 trillion.
Amidst a sense of calm in the broader market, analysts noted that there have been extreme fluctuations in individual stock prices. Reports highlighted that while the S&P 500 managed a notable rally driven by AI, major components of the index faced unprecedented volatility, with numerous instances of significant sell-offs.
In premarket trading, Applied Materials saw an 8% uptick after analysts rated it as an outperform with a price target of $385. Spotify shares also climbed 2% as the company announced a price increase for its premium subscription service, while Entegris Inc. experienced a 7% rise after declaring a quarterly dividend.
ASML shares soared over 7% to achieve a market valuation exceeding $500 billion, following TSMC’s positive outlook, indicating strong demand in the semiconductor sector. Concurrently, TSMC’s strong fourth-quarter performance underscored its pivotal role in the AI landscape, projecting a robust growth trajectory and significantly higher capital expenditures in the coming years.
In the energy market, oil prices experienced their first decline in six days as Trump indicated a reluctance to engage militarily in Iran. Brent crude fell by as much as 2.9%, while West Texas Intermediate approached a 15-month low in price differential compared to Brent, largely influenced by rising US inventories and increased Venezuelan oil supply.
