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TSMC's U.S.-listed shares jumped 3.6% in premarket trading after
the Taiwanese company, the world's largest contract chipmaker,
posted second-quarter profit above expectations and forecast
strong third-quarter revenue.
Shares of Apple and Nvidia, both TSMC customers, jumped 0.9% and
3.3%, respectively. Other chipmakers such as Advanced Micro
Devices, Intel and Micron Technology rose between 1.9% and 2.5%.
Barring Intel, chip stocks lost more than $500 billion in market
value in Wednesday's session following a report that the U.S.
was mulling tighter curbs on exports of advanced semiconductor
technology to China and comments on Taiwan from Republican
presidential candidate Donald Trump.
The Philadelphia SE Semiconductor index had its worst day in
four years on Wednesday. The pressure on chip stocks also
weighed on megacap shares.
The so-called "Magnificent 7" group of stocks rose in premarket
trading on Thursday. Meta Platforms, Tesla and Amazon.com <AMZN.O
gained between 0.4% and 1.7%.
Futures tracking the small-cap Russell 2000 index edged 0.1%
lower. The index closed down 1% in the previous session,
snapping a five-day winning streak.
Dow futures also edged lower after the index notched its third
consecutive closing high on Wednesday.
The VIX index, Wall Street's "fear gauge", eased slightly but
was still at a six-week high.
The quarterly earnings season that is well underway will be a
significant test whether expensively valued megacaps can keep
investors satisfied with strong results.
Netflix is scheduled to report results after the bell on
Thursday. The streaming giant's shares were slightly lower.
Abbot Laboratories, Domino's Pizza and D.R. Horton are among the
companies scheduled to report earnings before the bell.
On the economic data front, weekly jobless claims data as well
as the Philadelphia Federal Reserve's business index are on the
radar. Comments from Fed officials Lorie Logan, Mary Daly and
Michelle Bowman are also expected later in the day.
Investors are still pricing in a more than 91% chance of a
25-basis point interest rate cut from the Fed by its September
meeting, according to CME's FedWatch.
At 5:02 a.m. ET, Dow e-minis were down 41 points, or 0.1%, S&P
500 e-minis were up 15.75 points, or 0.28%, and Nasdaq 100
e-minis were up 115.25 points, or 0.58%.
Beyond Meat slumped 13.2% following a report the plant-based
meatmaker has engaged with bondholders to begin discussions
about restructuring its balance sheet.
(Reporting by Lisa Mattackal in Bengaluru; Editing by Shounak
Dasgupta)
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