Nasdaq Expects Gains as TSMC Spurs Relief Rally: Markets Wrap

(Bloomberg) — A rebound in chip stocks calmed market nerves as Taiwan Semiconductor Manufacturing Co.'s results led to gains on key stock markets.

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Contracts on the tech-heavy Nasdaq 100 rose 0.7% on Thursday, led by a rise in chip stocks after TSMC reported a better-than-expected 54% rise in quarterly earnings. That helped reverse the impact of ASML Holding NV's cut 2025 forecast, which halted a rally that had pushed U.S.-traded stocks to a three-month high. The Stoxx 600 index gained 0.5%.

“TSMC results were clearly positive and that has allayed some of the concerns surrounding the chip sector following this dismal report from ASML,” said Michael Brown, strategist at Pepperstone Group Ltd. “The risk outlook remains very positive, particularly with regard to central banks.” Both developed markets continue to reduce policy restrictions at a fairly rapid pace.”

The European Central Bank's political decision is due later and is expected to cut its key interest rate by another quarter point to 3.25%.

Traders are also focusing on the next wave of profits. Technology giant Netflix Inc. is expected to report its third-quarter earnings after the market close, amid some fears that its rapid rally could run out of steam.

The 10-year Treasury yield rose two basis points to 4.04%, while the Bloomberg Dollar Index was little changed.

Gold climbed to a record high ahead of U.S. retail sales and unemployment figures, and as the increasingly close presidential race boosts demand for safe-haven assets. Oil prices stabilized after four days of declines as traders weighed potential risks to Middle East production.

Iron ore fell to a three-week low after China's latest measures to support the property market, underscoring skepticism that they will be enough to boost construction and steel demand.

Important events this week:

• ECB interest rate decision, Thursday

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

• The Fed's Austan Goolsbee speaks on Thursday

• China's GDP, Friday

• US housing construction begins on Friday

• Fed officials Christopher Waller and Neel Kashkari speak Friday

Some of the key moves in the markets:

Shares

• S&P 500 futures rose 0.4% at 5:41 a.m. New York time

• Nasdaq 100 futures rose 0.7%

• The futures on the Dow Jones Industrial Average hardly changed

• The Stoxx Europe 600 rose 0.5%

• The MSCI World Index has hardly changed

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Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0863

• The British pound was little changed at $1.2991

• The Japanese yen was unchanged at 149.64 per dollar

Cryptocurrencies

• Bitcoin fell 0.5% to $67,304.57

• Ether was little changed at $2,617.74

Bonds

• The 10-year Treasury yield rose two basis points to 4.04%

• The 10-year German government bond yield rose two basis points to 2.21%

• The 10-year UK government bond yield rose one basis point to 4.08%

raw materials

• West Texas Intermediate crude rose 0.3% to $70.61 a barrel

• Spot gold rose 0.3% to $2,680.59 an ounce

This story was produced with support from Bloomberg Automation.

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