Stock Futures Trade Mixed, Chip Stocks Rise on TSMC Earnings

U.S. stock futures traded mixed on Thursday morning after Big Tech names dragged down major indexes in the previous trading session. Chip stocks trended higher in pre-market trading after Taiwan Semiconductor Manufacturing (TSM), or TSMC, reported impressive results. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) were up 0.92% and 0.41%, respectively, while those on the Dow Jones Industrial Average (DJIA) were down 0.09%, at 8:42 a.m. EST on January 15.

During Wednesday’s regular trading, the three major indexes closed in the red, marking a second consecutive day of losses for them. The S&P 500 and the Dow Jones declined 0.53% and 0.09%, respectively, while the Nasdaq Composite fell 1.00%.

Yesterday, Chinese authorities told domestic firms to steer clear of around 12 U.S. and Israeli software vendors on national security grounds, leading to a slump in software stocks. Microsoft (MSFT), Meta (META), and Amazon (AMZN) each dropped more than 2%. Oracle (ORCL) and Broadcom each slid 4%. Moreover, NVDA (NVDA) shares dropped 1.4% after China instructed domestic firms to avoid H200 purchases. U.S. banks were also among the biggest laggards.

Turning to trending stocks, Taiwan Semiconductor Manufacturing shares jumped about 7% in pre-market trading after the chip company reported a 35% jump in fourth-quarter profit, thanks to AI-led demand for its chips. Shares of ASML Holding (ASML), a chip equipment manufacturer and a supplier for TSMC, were up 6%. Also, Nvidia, Advanced Micro Devices (AMD), and Broadcom (AVGO) stocks were up 1.5%, 3.05%, and about 3%, respectively.

Meanwhile, Goldman Sachs (GS) stock fell more than 1% after the investment bank reported its fourth-quarter results. In contrast, Dell Technologies (DELL) stock was up nearly 2% as Barclays upgraded the tech stock to Buy from Hold, citing strength in AI server orders.  

Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.