(Bloomberg) — Taiwan Semiconductor Manufacturing Co.'s earnings spurred gains across major stock indexes, while a recovery in semiconductor stocks eased market tensions.
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Contracts in the tech-heavy Nasdaq 100 rose 0.9% on Thursday, led by gains in semiconductor stocks, after TSMC reported a better-than-expected 54% rise in quarterly profit. This reversed the impact of ASML Holding NV lowering its 2025 outlook and halted the stock price rally that had pushed U.S.-listed stocks to three-month highs. The Stoxx600 index rose 0.7%.
“TSMC's earnings are clearly positive and some of the concerns surrounding the chip sector have eased after ASML's disastrous report,” said Michael Brown, a strategist at Pepperstone Group. “Especially as a national central bank, we continue to be very positive.” Both developed markets continue to remove policy restrictions at a fairly rapid pace. ”
The European Central Bank's policy decision is expected to be made in the coming days, and is expected to cut the policy rate by a further quarter of a percentage point to 3.25%.
Shortly after, the market looked for further evidence that the U.S. consumer and labor markets remained healthy, with U.S. retail sales and jobless numbers increasing as investors sought support for their soft-landing bets. will pay attention to.
Ahead of the data, the yield on the 10-year U.S. Treasury note rose 2 basis points to 4.03%.
Traders are also awaiting results from tech bellwether Netflix. The company is scheduled to report third-quarter results after the close of trading amid concerns that its ferocious rally may be losing momentum.
Gold has soared to record highs as the presidential election intensifies and demand for safe-haven assets increases. Oil prices firmed 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 recent moves to shore up its real estate market, highlighting skepticism about whether iron ore will be enough to boost construction activity and steel demand.
Among individual stocks, Nvidia and Advanced Micro Devices rose more than 2% in pre-market trading. The biggest gainer was Expedia Group, which soared more than 7% after the Financial Times reported that Uber was considering a bid for the business.
This week's main events:
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ECB interest rate decision, Thursday
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U.S. retail sales, unemployment claims, industrial production, Thursday
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Fed's Austan Goolsby speaks on Thursday
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China GDP, Friday
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U.S. housing starts Friday
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Fed's Christopher Waller and Neel Kashkari speak on Friday
The main movements in the market are:
stock
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As of 6:55 a.m. New York time, S&P 500 futures were up 0.4%.
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Nasdaq 100 futures rose 0.9%
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Dow Jones Industrial Average futures little changed
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Stoxx European 600 rose 0.7%
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MSCI World Index rose 0.1%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0861.
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The British pound rose 0.1% to $1.3005.
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The Japanese yen remained almost unchanged at 149.58 yen to the dollar.
cryptocurrency
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Bitcoin fell 0.7% to $67,153.45.
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Ether fell 0.2% to $2,611.9.
bond
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The 10-year Treasury yield rose 2 basis points to 4.03%.
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The yield on German 10-year bonds rose 1 basis point to 2.20%.
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UK 10-year bond yield remains unchanged at 4.07%
merchandise
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West Texas Intermediate crude oil is little changed.
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Spot gold rose 0.6% to $2,688.55 an ounce.
This article was produced in partnership with Bloomberg Automation.
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