(Reuters) – Futures tracking the tech-heavy Nasdaq inched higher on Thursday, boosted by chip stocks after upbeat earnings from Taiwan’s TSMC, while caution loomed on the timing of interest-rate cuts as more corporate earnings rolled in.
U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSMC) led premarket gains among chipmakers with a 4.9% rise, after the world’s largest contract semiconductor maker reported upbeat quarterly profit and projected upwards of a 20% revenue growth, driven by demand for artificial intelligence chips.
Nvidia, Microchip Technology and Intel rose between 0.2% and 3.5%.
The S&P 500 ended its second session in the red on Wednesday, moving farther away from its highest intraday level notched in 2022 after a strong December retail sales figure, and as policymakers continue to talk down hopes for an early start to rate cuts.
The Federal Reserve is walking a tightrope to bring inflation under control without causing a growth slowdown, as the central bank’s “Beige Book” report – a snapshot of the health of the economy – showed economic activity saw little or no change from December through early January.
Money market participants now see a near-60% chance for a 25-basis-point rate cut in March, lower from an over-80% probability a month ago, as per the CME Group’s FedWatch Tool.
Investors will also parse comments by Atlanta Fed President Raphael Bostic, a voting member this year, for clues on the timing of rate cuts.
On the economic data front, December housing starts data is due at 8:30 a.m. ET, where economists polled by Reuters forecast 1.42 million new homes built, compared with 1.56 million in the month before.
Weekly jobless claims data is also due, which could shed light on the state of the labor market.
At 5:37 a.m. ET, Dow e-minis were down 10 points, or 0.03%, S&P 500 e-minis were up 2.5 points, or 0.05%, and Nasdaq 100 e-minis were up 47.75 points, or 0.28%.
In quarterly earnings, Birkenstock added 3.0% in light trading, after the German footwear maker beat sales expectations and forecast annual revenue above estimates.
Reports from Truist Financial, M&T Bank Corp and KeyCorp are also expected before the bell.
Megacap stocks such as Microsoft, Tesla and Meta Platforms also gained between 0.03% and 1.1%, as U.S. Treasury yields ticked lower. [US/]
Spirit Airlines slid 4.2% after a judge blocked the airline’s planned merger with rival JetBlue Airways.
Discover Financial Services tumbled 11.2% after reporting a 62% fall in fourth-quarter profit, as the lender set aside more rainy-day funds to cover loans that could sour in a tough economy.
(Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai)