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U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSMC)
led premarket gains among chipmakers with a 4.9% rise, after the
world's largest contract semiconductor maker reported upbeat
quarterly profit and projected upwards of a 20% revenue growth,
driven by demand for artificial intelligence chips.
Nvidia, Microchip Technology and Intel rose between 0.2% and
3.5%.
The S&P 500 ended its second session in the red on Wednesday,
moving farther away from its highest intraday level notched in
2022 after a strong December retail sales figure, and as
policymakers continue to talk down hopes for an early start to
rate cuts.
The Federal Reserve is walking a tightrope to bring inflation
under control without causing a growth slowdown, as the central
bank's "Beige Book" report - a snapshot of the health of the
economy - showed economic activity saw little or no change from
December through early January.
Money market participants now see a near-60% chance for a
25-basis-point rate cut in March, lower from an over-80%
probability a month ago, as per the CME Group's FedWatch Tool.
Investors will also parse comments by Atlanta Fed President
Raphael Bostic, a voting member this year, for clues on the
timing of rate cuts.
On the economic data front, December housing starts data is due
at 8:30 a.m. ET, where economists polled by Reuters forecast
1.42 million new homes built, compared with 1.56 million in the
month before.
Weekly jobless claims data is also due, which could shed light
on the state of the labor market.
At 5:37 a.m. ET, Dow e-minis were down 10 points, or 0.03%, S&P
500 e-minis were up 2.5 points, or 0.05%, and Nasdaq 100 e-minis
were up 47.75 points, or 0.28%.
In quarterly earnings, Birkenstock added 3.0% in light trading,
after the German footwear maker beat sales expectations and
forecast annual revenue above estimates.
Reports from Truist Financial, M&T Bank Corp and KeyCorp are
also expected before the bell.
Megacap stocks such as Microsoft, Tesla and Meta Platforms also
gained between 0.03% and 1.1%, as U.S. Treasury yields ticked
lower. [US/]
Spirit Airlines slid 4.2% after a judge blocked the airline's
planned merger with rival JetBlue Airways.
Discover Financial Services tumbled 11.2% after reporting a 62%
fall in fourth-quarter profit, as the lender set aside more
rainy-day funds to cover loans that could sour in a tough
economy.
(Reporting by Johann M Cherian in Bengaluru; Editing by Pooja
Desai)
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