Nasdaq Index, Dow Jones, S&P 500 News: Futures Rise as Wall Street Eyes Recovery; TSMC Leads Tech Surge

Higher Cash Market Opening Expected

Stock futures saw a rise on Thursday as Wall Street aimed for a recovery after consecutive losses in major indexes like the S&P 500 and Nasdaq Composite. This follows a turbulent period characterized by underperforming tech stocks and broader market uncertainties.

At 11:45 GMT, Dow Futures are trading 38076.00, up 86.00 or +0.23%. S&P 500 Index futures are at 5076.25, up 14.00 or +0.28% and Nasdaq 100 futures are trading 17716.25, up 57.75 or +0.33%.

Market Movements

The tech sector faced significant headwinds, with major players like Nvidia dragging down indexes with a nearly 4% drop. The Dow Jones also declined, marking its seventh downturn in eight sessions. Among pre-market activities, notable movements included a sharp 9% fall in Equifax shares due to disappointing forward guidance, and Las Vegas Sands experiencing a modest decline despite slightly exceeding revenue expectations.

Earnings Highlights

Positive earnings reports came from D.R. Horton, which saw its stock jump after surpassing fiscal second-quarter earnings expectations, posting $3.52 per share. Alaska Airlines provided a robust earnings forecast for the upcoming quarters, buoyed by strong travel demand, despite a first-quarter loss. Conversely, Taiwan Semiconductor Manufacturing Company (TSMC) beat both revenue and profit expectations due to sustained demand for advanced chips, particularly those used in AI applications.

Tech and Travel Sector Insights

TSMC reported a significant year-over-year revenue and profit increase, continuing its dominance in the chip manufacturing sector. The firm anticipates strong second-quarter revenue, driven by high demand for 3-nanometer and 5-nanometer technologies. Similarly, the travel sector, represented by Alaska Airlines and others, expects a profitable year ahead, supported by continuing robust travel demand.

Treasury and Economic Data

In other financial news, U.S. Treasury yields slightly declined as investors awaited new economic data and statements from Federal Reserve officials. Recent comments by Fed Chair Jerome Powell indicated ongoing concerns about inflation, affecting expectations regarding interest rate cuts.

Short-Term Forecast

Given the current economic indicators and earnings optimism from specific sectors, the market shows potential for a bullish short-term outlook. However, this is contingent on upcoming economic data releases and Federal Reserve cues that could influence investor sentiment and market directions.

Technical Analysis

E-mini Nasdaq-100 Index futures are trying to recover from yesterday’s steep sell-off. However, the chart pattern suggests a sustained move could be difficult with the intermediate trend now lower following the recent breakdown under the 50-day moving average at 18243.67. This is now new resistance.

Sustained downside momentum could put the 200-day moving average at 16753.62 on the radar.