Tech stocks rebounded slightly on Thursday from the Nasdaq’s worst day since 2022, as upbeat results from TSMC ( TSM ) helped calm concerns about AI trading more than Netflix’s ( NFLX ) earnings.
Tech-heavy Nasdaq 100 (NQ=F) futures rose 0.4%, while S&P 500 futures (ES=F) rose 0.1%. But Dow Jones Industrial Average futures (YM=F) fell about 0.2%, hitting an all-time high on the blue-chip index.
Wall Street’s rally has hit mounting volatility this week as political, geopolitical and trade risks roil the market, and hopes the Fed will finally cut interest rates this year.
The Nasdaq Composite (^IXIC) fell more than 2.7% on Wednesday, thanks to a possible increase in U.S. restrictions on exports to China. Chip stocks Nvidia ( NVDA ) , DSMC ( DSM ) and ASML ( ASML ) were all replaced by technology leaders without moving into key areas of the market.
TSMC’s strong quarterly earnings helped lift sentiment Thursday. The Taiwanese chip giant beat profits with a 36% advance, and raised its 2024 sales outlook to signal confidence in the AI boom. Shares of suppliers to Nvidia and Apple ( AAPL ) rose in premarket trade.
Netflix ( NFLX ) was the highlight of Thursday’s earnings, after the market closed. Expectations for the streamer are high, though some on Wall Street note that the stock is already flirting with record levels.
Elsewhere, investors are keeping an eye on the US presidential election, given the potential of Republican nominee Donald Trump to move markets. President Joe Biden has come down with COVID-19 at a key point in his campaign, and key Democratic leaders have renewed talk of dropping out.
