Nasdaq Set for Gains as TSMC Spurs Relief Rally: Markets Wrap

(Bloomberg) — A recovery in chip stocks soothed market nerves as results from Taiwan Semiconductor Manufacturing Co. spurred gains across major stock gauges.

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Contracts on the tech-heavy Nasdaq 100 climbed 0.9% on Thursday, led by an advance in chip stocks after TSMC posted a better-than-projected 54% rise in quarterly earnings. That helped reverse the impact of ASML Holding NV’s lowered 2025 guidance, which halted a rally that had pushed US-traded shares to a three-month high. The Stoxx 600 index gained 0.7%.

“TSMC earnings were clearly a positive and that has allayed some of the worries around the chip sector after that dismal report from ASML,” said Michael Brown, strategist at Pepperstone Group Ltd. “The outlook for risk remains very positive particularly as central banks across both developed markets continue to remove policy restriction at a pretty rapid pace.”

The European Central Bank’s policy decision is due later, where it’s expected to cut its benchmark rate by another quarter-point to 3.25%.

Shortly after, the market will turn its attention to US retail sales and jobless figures for further evidence that the US consumer and labor market remain healthy, as investors seek confirmation of soft-landing bets.

Treasury 10-year yields climbed two basis points to 4.03% ahead of the data.

Traders also await results from tech bellwether Netflix Inc., which is set to report its third-quarter earnings after the close amid some concern its breakneck rally may be running out of steam.

Gold climbed to a record as the increasingly tight presidential race drives demand for haven assets. Oil steadied after four days of declines, as traders weighed potential risks to production in the Middle East.

Iron ore tumbled to a three-week low following China’s latest moves to shore up the property market, underscoring skepticism they will be enough to boost construction activity and steel demand.

Among individual movers, Nvidia Corp. and Advanced Micro Devices Inc. advanced more than 2% in premarket trading. The biggest gainer was Expedia Group Inc., which jumped more than 7% after the Financial Times report that Uber explored a bid for the business.

Key events this week:

• ECB rate decision, Thursday

• US retail sales, jobless claims, industrial production, Thursday

• Fed’s Austan Goolsbee speaks, Thursday

• China GDP, Friday

• US housing starts, Friday

• Fed’s Christopher Waller, Neel Kashkari speak, Friday

Story continues

Some of the main moves in markets:

Stocks

• S&P 500 futures rose 0.4% as of 6:55 a.m. New York time

• Nasdaq 100 futures rose 0.9%

• Futures on the Dow Jones Industrial Average were little changed

• The Stoxx Europe 600 rose 0.7%

• The MSCI World Index rose 0.1%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0861

• The British pound rose 0.1% to $1.3005

• The Japanese yen was little changed at 149.58 per dollar

Cryptocurrencies

• Bitcoin fell 0.7% to $67,153.45

• Ether fell 0.2% to $2,611.9

Bonds

• The yield on 10-year Treasuries advanced two basis points to 4.03%

• Germany’s 10-year yield advanced one basis point to 2.20%

• Britain’s 10-year yield was little changed at 4.07%

Commodities

• West Texas Intermediate crude was little changed

• Spot gold rose 0.6% to $2,688.55 an ounce

This story was produced with the assistance of Bloomberg Automation.

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