S&P 500: TSMC Surges on AI Forecast, ADM Drops After Trump Sugar Push

Stock Futures Tread Water as Earnings and Trump-Powell Drama Take Center Stage

U.S. stock futures were mostly flat Thursday morning as traders weighed solid corporate earnings against renewed political noise. Dow futures dipped 52 points, or 0.1%, while S&P 500 and Nasdaq 100 futures hovered just above breakeven. The market’s focus remained split between company results and headlines around President Donald Trump’s potential interference with the Federal Reserve.

Equities reversed losses late Wednesday after Trump walked back talk of removing Fed Chair Jerome Powell. The initial selloff came after reports that the president had drafted a letter demanding Powell’s resignation, but Trump later said he wasn’t planning to act on it “yet.” Traders are now redirecting their attention toward earnings, which have generally outperformed expectations so far this quarter.

PepsiCo (PEP) Gains After Earnings Beat Despite Sluggish U.S. Demand

PepsiCo shares rose over 1% premarket after the company reported second-quarter earnings of $2.12 per share on $22.73 billion in revenue, topping estimates. While domestic demand softened, the company’s international growth helped offset the slowdown. The strong beat adds to a growing list of consumer staples outperforming in Q2.

GE Aerospace (GE) Lifts Guidance as Jet Engine Business Soars

GE Aerospace posted $1.66 per share in adjusted earnings on $10.15 billion in revenue, ahead of forecasts. Shares gained 1% premarket as the company raised full-year guidance across multiple metrics. The strength highlights ongoing recovery in the aerospace sector and resilient demand for aviation components.

United Airlines (UAL) Slips After Cutting Full-Year Outlook

Despite beating Q2 earnings expectations with $3.87 per share, United Airlines stock dropped about 1% after lowering its full-year profit forecast to $9–$11 per share. The carrier cited improved travel demand but signaled caution on pricing power and operational costs. Shares are down nearly 9% year-to-date, though up 20% over the past month.

ADM (ADM) Drops on Trump’s Sugar Comments, Ingredion (INGR) Hit Hard

Archer-Daniels-Midland fell nearly 3% after Trump claimed Coca-Cola would switch to cane sugar, threatening demand for high-fructose corn syrup. Ingredion tumbled over 7%. Coca-Cola did not confirm the change, offering only a vague statement about upcoming innovations. The Corn Refiners Association warned of job losses and trade issues tied to such a switch.

Taiwan Semiconductor (TSMC) Jumps on Record Profit, Strong AI Demand

TSMC shares climbed over 4% as the chipmaker posted a 61% year-over-year jump in profit, beating estimates. AI chip demand fueled the growth, with its advanced 7nm and below technologies making up 74% of wafer revenue. The company expects 2025 revenue to rise 30%, but noted uncertainty from U.S. tariff threats and potential export controls.

Market Outlook: Earnings Continue to Drive Trade Focus

With more than 45 S&P 500 firms reporting and 87% beating estimates, the earnings season is offering upside surprises. Traders are watching closely for results from tech giants, given their market weight and exposure to AI.

Geopolitical noise around the Fed and tariffs remains a risk, but strong corporate fundamentals are currently steering the market.

More Information in our Economic Calendar.