U.S. stock futures moved higher on Thursday, eyeing a tech-led comeback as upbeat TSMC (TSM) results boosted AI hopes and investors braced for Netflix (NFLX) to kick earnings season into high gear to take.
Futures on the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) rose about 0.2% after the latest decline. Nasdaq 100 (^NDX) futures also added 0.2% after technology stocks finished more than 1% lower.
Stocks have struggled on concerns that inflation is no longer cooling and that the Federal Reserve could ease interest rate cuts. That has put corporate earnings in focus as investors keep a close eye on how well the reports match up with high expectations.
Signs of strong demand for AI in TSMC results have revived optimism about chip and technology stocks (XLK), which caused Wednesday’s pullback. The Taiwanese chip giant, seen as a bellwether for the industry, signaled an “insatiable” appetite for AI as it posted quarterly profits.
The focus on earnings now shifts to Netflix, the first of the ‘Magnificent’ group of companies to report. The streaming leader’s financial update later Thursday is seen by some as the first real test for stocks this earnings season, as mega-cap tech continues to play a big role in pushing markets higher.
Meanwhile, the market is still keeping an eye on whether the Federal Reserve could forego a rate cut this year given the chances of a ‘no landing’ for the economy. An update on unemployment claims and appearances by policymakers, including John Williams and Raphael Bostic, is planned.
U.S. bond yields continued to slide from recent five-month highs, easing pressure on stocks. Ten-year Treasury yields (^TNX) fell about 2 basis points to trade near 4.56%.
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