(Bloomberg) — US tech stocks were set to claw back a little of this week’s slump, buoyed by upbeat earnings from the world’s largest chipmaker and the prospect of encouraging results from other big companies in the sector.
Most Read from Bloomberg
Nasdaq 100 futures climbed 0.4% after estimate-beating earnings and strong forecasts from Taiwan Semiconductor Manufacturing Co. Nvidia Corp., Advanced Micro Devices Inc. and Super Micro Computer Inc. all rose strongly in premarket trading. The Nasdaq index endured its worst day since 2022 on Wednesday, on concerns over stricter US curbs on firms that supply China with advanced semiconductor technology. Europe’s Stoxx 600 index added 0.3%.
Analysts say a relatively robust earnings season and expectations of interest-rate cuts from the Federal Reserve and other central banks are also supporting sentiment. Later in the day, streaming services giant Netflix Inc. will be the first major US tech company to report results — it’s expected to show continued growth in global subscriber numbers.
“I’m not surprised people are trying to buy the dip,” said Michael Brown, senior strategist at Pepperstone Group Ltd. “The fundamental bull case remains strong for equities — earnings and economic growth look resilient and the Fed should start cutting rates from September.”
The concerns around tech haven’t fully dissipated, however, and Amsterdam-listed chip giant ASML Holding NV — among companies that could be hit by any tougher US measures — extended Wednesday’s 11% rout. That, alongside the prospect of trade tariffs under a potential Donald Trump presidency, continue to weigh on Europe’s Stoxx 600 index.
On the earnings front, Volvo AB rose after it reported better-than-expected profits for the second quarter, though the update from telecom firm Nokia Oyj disappointed, knocking the stock as much as 10% lower.
In New York, airline stocks lost ground in the premarket after the earnings outlook for United Airlines Holdings Inc. fell short of estimates. Beyond Meat Inc. also slid on concerns over a possible debt restructuring.
Elsewhere, a dollar index traded near the lowest level in two months, while the yen steadied after a recent surge that’s widely attributed to a bout of buying by Japanese authorities. The euro weakened slightly ahead of a European Central Bank meeting that’s expected to signal the next rate cut will come in September.
Later in the day, a string of Fed rate-setters are due to speak, including San Francisco Fed chief Mary Daly and Governor Michelle Bowman. Initial jobless claims figures due later Thursday will give investors the latest snapshot of the state of the economy.
Key events this week:
-
ECB rate decision, Thursday
-
US initial jobless claims, Philadelphia Fed manufacturing, Conference Board LEI, Thursday
-
Fed’s Mary Daly, Lorie Logan and Michelle Bowman speak, Thursday
-
Fed’s John Williams, Raphael Bostic speak, Friday
Some of the main moves in markets:
Stocks
-
S&P 500 futures were little changed as of 6:32 a.m. New York time
-
Nasdaq 100 futures rose 0.3%
-
Futures on the Dow Jones Industrial Average fell 0.2%
-
The Stoxx Europe 600 rose 0.3%
-
The MSCI World Index was little changed
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
The euro was little changed at $1.0932
-
The British pound fell 0.1% to $1.2991
-
The Japanese yen fell 0.2% to 156.44 per dollar
Cryptocurrencies
-
Bitcoin was little changed at $64,559.46
-
Ether rose 0.7% to $3,440.33
Bonds
-
The yield on 10-year Treasuries advanced three basis points to 4.18%
-
Germany’s 10-year yield advanced two basis points to 2.44%
-
Britain’s 10-year yield was little changed at 4.08%
Commodities
-
West Texas Intermediate crude was little changed
-
Spot gold rose 0.2% to $2,463.17 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson and Chiranjivi Chakraborty.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
