US Chipmakers Set to Bounce as TSMC Result Cheers: Markets Wrap

　　(Bloomberg) -- Nvidia Corp. and other chip-related stocks were set to claw back a little of this week‘s slump, buoyed by upbeat earnings from the world’s largest chipmaker and the prospect of encouraging results from the sector.

　　Nasdaq 100 futures climbed 0.4% after estimate-beating earnings and strong forecasts from Taiwan Semiconductor Manufacturing Co., while Nvidia, Advanced Micro Devices Inc. and Intel Corp all rose in premarket trading. The Nasdaq index endured its worst day since 2022 on Wednesday, on concerns over stricter US curbs on firms that supply China with advanced semiconductor technology.

　　Analysts say a relatively robust earnings season and expectations of interest-rate cuts from the Federal Reserve and other central banks are also supporting sentiment. Later in the day, streaming services giant Netflix Inc. will be the first major US tech company to report results — its expected to show continued growth in global subscriber numbers.

　　“Im not surprised people are trying to buy the dip,” said Michael Brown, senior strategist at Pepperstone Group Ltd. “The fundamental bull case remains strong for equities — earnings and economic growth look resilient and the Fed should start cutting rates from September.”

　　The concerns around tech haven‘t fully dissipated, however, and Amsterdam-listed chip giant ASML Holding NV — among companies that could be hit by any tougher US measures — extended Wednesday’s 11% rout. Sales to China accounted for almost half the company‘s revenue. While Europe’s Stoxx 600 index rose 0.4%, the prospect of trade tariffs under a potential Donald Trump presidency is weighing on sentiment.

　　On the earnings front, Volvo AB rose after it reported better-than-expected profits for the second quarter, though the update from telecom firm Nokia Oyj disappointed, knocking the stock as much as 10% lower.

　　In New York, airline stocks lost ground in the premarket after the earnings outlook for United Airlines Holdings Inc. fell short of estimates. Beyond Meat Inc. also slid on concerns over a possible debt restructuring. Dominos Pizza Inc. shares slid 11% after the restaurant chain reported weaker-than-expected domestic comparable sales growth.

　　Story continues

　　Elsewhere, a dollar index rose off a two-month low, while the yen steadied after a recent surge that‘s widely attributed to a bout of buying by Japanese authorities. The euro weakened slightly ahead of a European Central Bank meeting that’s expected to signal the next rate cut will come in September.

　　Later in the day, a string of Fed rate-setters are due to speak, including San Francisco Fed chief Mary Daly and Governor Michelle Bowman. Initial jobless claims figures due later Thursday will give investors the latest snapshot of the state of the economy. Economists polled by Bloomberg expect 229,000 claims to have been filed, a slight increase from the previous week.

　　Key events this week:

• ECB rate decision, Thursday
• US initial jobless claims, Philadelphia Fed manufacturing, Conference Board LEI, Thursday
• Feds Mary Daly, Lorie Logan and Michelle Bowman speak, Thursday
• Feds John Williams, Raphael Bostic speak, Friday

　　Some of the main moves in markets:

　　Stocks

• S&P 500 futures rose 0.2% as of 7:50 a.m. New York time
• Nasdaq 100 futures rose 0.5%
• Futures on the Dow Jones Industrial Average fell 0.1%
• The Stoxx Europe 600 rose 0.4%
• The MSCI World Index was little changed

　　Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.0930
• The British pound fell 0.2% to $1.2981
• The Japanese yen fell 0.2% to 156.49 per dollar

　　Cryptocurrencies

• Bitcoin rose 0.4% to $64,760.28
• Ether rose 1.2% to $3,456.18

　　Bonds

• The yield on 10-year Treasuries advanced three basis points to 4.18%
• Germanys 10-year yield advanced two basis points to 2.44%
• Britains 10-year yield was little changed at 4.07%

　　Commodities

• West Texas Intermediate crude fell 0.1% to $82.73 a barrel
• Spot gold rose 0.2% to $2,464.85 an ounce