US stock futures experienced an uptick on Thursday following two consecutive days of losses, as the positive outlook from chip manufacturing giant TSMC fueled optimism around artificial intelligence (AI) developments. Futures for the tech-centric Nasdaq 100 rose by 0.5%, while S&P 500 futures increased by approximately 0.3%. Meanwhile, Dow Jones Industrial Average futures remained steady, hovering just above the flat line after Wall Street had a tough two days.
TSMC, recognized as the world’s leading chipmaker, reported a remarkable 35% increase in its fourth-quarter profits, greatly attributed to the ongoing AI boom. In light of strong demand, the company plans to expand its investments by 2026, potentially establishing factories in the US. Following this announcement, shares of TSMC saw a notable rise in pre-market trading.
On the previous day, technology stocks had led the market decline, dragging major indexes downward. The S&P 500 saw a decrease of 0.5%, and the Nasdaq Composite dropped by 1%. With these latest shifts, all three major benchmarks are grappling with back-to-back declines.
Investors are now looking ahead to upcoming earnings reports from major financial institutions including Goldman Sachs, Morgan Stanley, and BlackRock, as well as the release of weekly jobless claims data.
Investor sentiment is also being influenced by ongoing geopolitical tensions. Recent talks involving Trump administration officials and leaders from Denmark and Greenland highlighted a fundamental disagreement concerning US control over Greenland. A Danish official stated that no resolution was reached during these discussions.
Simultaneously, markets have been unsettled by former President Trump’s criticism of Federal Reserve Chair Jerome Powell. The threat to the Fed’s independence has escalated this week, particularly following Powell’s confirmation of a criminal investigation by the Justice Department involving the central bank’s leadership.
In other market updates, shares of ASML surged by over 7% in Amsterdam, propelling its market capitalization to exceed $500 billion after TSMC’s positive forecast boosted investor confidence. ASML, a Dutch semiconductor equipment manufacturer, also saw an increase in its US-listed stock following TSMC’s impressive Q4 earnings report.
TSMC’s net profit reached 506 billion new Taiwan dollars (approximately $16 billion) for the quarter ending in December, marking a significant 35% growth from the previous year and surpassing analyst expectations. The company reported a 21% rise in revenue, which totaled more than 1.046 trillion new Taiwan dollars (around $33 billion) during the same period. TSMC has announced plans to elevate its capital expenditure budget to between $52 billion and $56 billion for 2026, up from about $40 billion last year. The company’s strong position within the AI market has been reflected in its stock performance, climbing over 8% year-to-date.
In other news, oil prices took a dip after President Trump indicated a possible halt to military intervention regarding Iran’s domestic unrest. Brent crude prices fell by as much as 2.9% to below $65 per barrel, following an 11% increase over the past week. The decrease in oil prices coincided with reports showing a 3.4 million barrel increase in US crude stockpiles, marking the largest buildup since early November.
