Tech stocks are making a small comeback on Thursday after the Nasdaq’s worst day since 2022, with TSMC’s upbeat results helping to calm worries about the AI trade ahead of Netflix’s earnings report.
Futures on the tech-heavy Nasdaq 100 rose 0.4%, while S&P 500 futures edged up 0.1%. However, Dow Jones Industrial Average futures slid roughly 0.2%, coming off an all-time closing high for the blue-chip index.
This week has been a turbulent one for Wall Street, with political, geopolitical, and trade risks unsettling a market that was feeling confident in the Fed’s plan to cut interest rates this year.
The Nasdaq Composite sank over 2.7% on Wednesday, partly due to concerns about potential escalation in US curbs on exports to China. Chip stocks like Nvidia, TSMC, and ASML were hit hard as investors rotated from tech leaders into other parts of the market.
On a positive note, TSMC’s strong quarterly earnings on Thursday helped improve the market sentiment. The Taiwanese chip giant beat profit expectations with a 36% jump and raised its 2024 sales outlook, signaling confidence in the AI boom. Shares in TSMC rose in pre-market trading as a supplier to both Nvidia and Apple.
Investors are also eagerly awaiting Netflix’s earnings report, which is due after the market close today. Expectations are high for the streaming giant, although some on Wall Street note that the stock is already trading near record levels.
In addition to corporate news, investors are closely watching the US presidential race, particularly with President Joe Biden’s recent COVID-19 diagnosis at a critical time in the campaign. With potential market-moving implications, it is essential for investors to stay informed and ready to adapt to any changes in the financial landscape. Extreme Investor Network is committed to providing valuable insights and analysis to help investors navigate these uncertain times and make informed decisions for their financial future. Stay tuned to our blog for the latest updates and expert guidance on all things finance.