Tech stocks staged a modest recovery on Thursday from the Nasdaq's worst day since 2022, as strong results from TSMC (TSM) eased concerns about AI trading ahead of Netflix's (NFLX) earnings release.
Futures for the tech-heavy Nasdaq 100 (NQ=F) rose 0.4%, while S&P 500 (ES=F) rose 0.1%, but Dow Jones Industrial Average futures (YM=F) were down about 0.2% from the blue-chip index's all-time closing high.
Wall Street's rally has been further turbulent this week as political, geopolitical and trade risks destabilize a market that was finally convinced the Fed would cut interest rates this year.
The Nasdaq Composite Index (^IXIC) fell more than 2.7% on Wednesday amid a possible escalation of U.S. export controls on China. Semiconductor stocks Nvidia (NVDA), TSMC (TSM) and ASML (ASML) all took hits amid a shift away from tech giants to less visible corners of the market.
Strong quarterly results from TSMC on Thursday lifted the market mood. The Taiwanese semiconductor giant beat expectations with a 36% increase in profits and raised its 2024 revenue outlook to signal confidence in the AI boom. Shares of the company, which supplies products to Nvidia and Apple, were up slightly in premarket trading (AAPL).
Netflix (NFLX) is headlining an earnings report due out after the market closes on Thursday, and while expectations are high for the streaming service, some on Wall Street point out that the stock is already trading at record levels.
Meanwhile, investors are keeping a close eye on the U.S. presidential election as Republican candidate Donald Trump could sway markets. President Joe Biden has contracted COVID-19 at a crucial time in the campaign and key Democratic leaders have resumed talks of withdrawing.
