US stock futures rose on Thursday as chip giant TSMC’s stellar earnings buoyed AI hopes, taking minds off fears of a prolonged US-China trade war stoked by President Trump.
Nasdaq 100 futures (NQ=F) moved up 0.5%, while those on the S&P 500 (ES=F) put on roughly 0.4%, as Nvidia (NVDA) and other AI-related stocks floated higher in TSMC’s slipstream. Contracts on the Dow Jones Industrial Average futures (YM=F), which include fewer tech stocks, added 0.3%.
TSMC (Taiwan Semiconductor Manufacturing Company) hiked its outlook for 2025 revenue growth for the second time this year, giving hope that surging AI demand will keep on booming.
The go-to contract chipmaker for Nvidia (NVDA) and Apple (AAPL) also reported a nearly 40% surge in quarterly profit in the last quarter, beating estimates and reaching a record. Nvidia, Micron (MU) and other AI-related stocks floated higher in TSMC’s slipstream in premarket.
The upbeat moode also follows strong quarterly results from Wall Street banks and hints the Federal Reserve will cut interest-rates again this year.
On the downside, US-China trade frictions promise to keep unsettling markets, on the heels of a choppy session on Wall Street.
President Trump confirmed on Wednesday that those tensions remain high, telling a reporter who asked whether the two countries are headed for a long-lasting trade war, “Well, you’re in one now.” At the same time, Treasury Secretary Scott Bessent suggested trade truce between the two could be extended.
The conflicting messages follow a series of threats by Trump to further restrict trade with China in response to new sanctions and export controls from Beijing, as well as to impose additional 100% tariffs in November.
Another headwind, the US government shutdown, entered its third week, The stoppage, which has deprived the Fed and Wall Street of key data on the economy, is increasingly expected to continue into November.
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