Nasdaq futures rise as TSMC outlook eases AI worries

Technology stocks led U.S. stock futures higher on Thursday as TSMC's (TSM) bullish outlook eased concerns about AI chip demand and its next batch of earnings and retail sales was on the horizon.

Contracts on the tech-heavy Nasdaq 100 (NQ=F) rose 0.8%, while S&P 500 futures (ES=F) rose 0.4%. Dow Jones Industrial Average futures (YM=F) remained near a record high while key indicators rebounded to close with gains.

Contract chipmaker TSMC posted a 54% jump in quarterly profit, beating Wall Street estimates. He raised his forecast for revenue growth in 2024 amid rising AI demand. Major chipmakers' upgrades to Apple's (AAPL) and Nvidia's (NVDA) outlook calmed a market unsettled by ASML's (ASML) poor sales forecast and revived hopes of an AI boom.

U.S.-listed shares of TSMC rose 8% in premarket trading, adding to a rally in chip stocks including Arm (ARM), up 3.6%, Nvidia and Broadcom (AVGO).

On the data front, a later monthly retail sales report could show whether the economy is regaining momentum after a surprisingly strong jobs report for September. Also scheduled is a weekly reading of jobless claims, which will also be watched by investors debating whether the Federal Reserve will hold off on cutting interest rates in November.

After an excellent performance from the major banks, the focus is now on Big Tech profits to offset last quarter's disappointments. After the bell, Netflix becomes the first Magnificent Seven megacap to release a report, and Wall Street is waiting for price increase news that could potentially push the stock higher.