Tech Stocks Soar on TSMC’s Upbeat Outlook
The tech-heavy Nasdaq Composite surged over 0.2% on Thursday, led by chip stocks, as Taiwan Semiconductor Manufacturing Company’s (TSM) positive outlook alleviated concerns about AI chip demand. The S&P 500 and Dow Jones Industrial Average also rose, with the latter hovering near all-time highs.
Strong Retail Sales Data Boosts Market Confidence
Retail sales jumped 0.4%, exceeding expectations, and weekly jobless claims came in at 241,000, far below estimates. This data, combined with September’s strong jobs report, suggests the economy may be reaccelerating. Investors are now watching for clues on the Federal Reserve’s interest rate move in November.
Chipmaker TSMC Posts Impressive Quarterly Profit
TSMC’s quarterly profit soared 54%, beating Wall Street estimates, and the company raised its forecast for 2024 revenue growth amid surging AI demand. This outlook boost reassured a market spooked by ASML’s downbeat sales forecast, reviving hopes for an AI boom. TSMC’s US-listed shares climbed as much as 9%, poised to cross a $1 trillion market valuation.
Homebuilders Gain Confidence Despite Rising Mortgage Rates
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index rose two points to 43 in October, marking the second consecutive monthly gain. While housing affordability remains low, builders are feeling more optimistic about 2025 market conditions. Mortgage rates have been rising, but builders are offering concessions to close deals.
Earnings Season Heats Up
After a stellar showing by big banks, the focus shifts to Big Tech earnings. Netflix becomes the first “Magnificent Seven” megacap to report, with Wall Street watching for price-hike news to potentially lift the stock. Other companies set to report earnings include Blackstone, Travelers, and WD-40.
Lucid Shares Plummet on Stock Offering News
Luxury EV maker Lucid’s shares tanked more than 14% on Thursday morning after announcing a stock offering to raise about $1.67 billion. Year-to-date, Lucid shares are down more than 32%.
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