The major index futures are showing early strength on this Thursday, hinting that stocks could see further gains after yesterday’s turbulent session, which ended pre dominantly in the green. The markets may benefit from ongoing optimism surrounding the artificial intelligence sector, as a major semiconductor company has surged by 2.3 percent in pre-market trading following a larger than anticipated increase in third quarter profits, driven by robust demand for AI chips. Taiwan Semiconductor, recognized for producing chips for Nvidia, has also raised its forecast for full-year revenue growth and confirmed its plan to dedicate up to $42 billion for capital expenditures by year-end. Prominent AI companies Nvidia and Broadcom are experiencing notable pre-market strength in light of the recent developments from Taiwan Semiconductor. Salesforce, a component of the Dow, is experiencing a notable surge of 6.5 percent in pre-market trading following the cloud-based software company’s forecast of revenue exceeding $60 billion by 2030.
Stocks saw notable ups and downs during the trading day on Wednesday, maintaining the high level of volatility noted in Tuesday’s session. The major averages varied during the day, hovering near the neutral point. While the Nasdaq and the S&P 500 finished the day firmly in the green, the narrower Dow posted a slight decline. The Dow fell by 17.15 points, marking a decline of under a tenth of a percent, closing at 46,253.31. In contrast, the S&P 500 rose by 26.75 points, or 0.4 percent, reaching 6,671.06, while the Nasdaq jumped by 148.38 points, which is 0.7 percent, to finish at 22,679.08. The current shifts on Wall Street surfaced as traders evaluated encouraging earnings reports while also grappling with worries about U.S.-China trade relations and ongoing valuation concerns. Investment banking giant Morgan Stanley experienced a remarkable increase of 4.7 percent, reaching a record closing high following the announcement of third quarter results that exceeded expectations. Shares of Bank of America experienced a notable increase of 4.4 percent after the company reported third quarter results that exceeded analyst expectations for both revenue and earnings. U.S.-listed shares of ASML showed notable strength following the Dutch semiconductor equipment maker’s mixed third quarter results. The company stated that it expects total net sales for 2026 to exceed those of 2025. Meanwhile, traders kept a close eye on any comments from President Donald Trump about U.S. trade with China, as these have greatly impacted market sentiment in recent sessions.
In U.S. economic news, a report this morning indicating that New York manufacturing activity has shown a significant improvement in October. The New York Fed announced that its general business conditions index increased to a positive 10.7 in October, marking a notable rebound from the negative 8.7 noted in September, with a positive figure indicating growth. Experts had expected that the index would increase to a negative 1.8. In the meantime, the Federal Reserve’s Beige Book indicated that there has been little variation in economic activity in the U.S. since early September. The Beige Book, which compiles anecdotal evidence about economic conditions in the twelve Fed districts, revealed that three districts saw slight to modest growth in activity, five reported stability, and four noted a slight decline.
Gold stocks experienced a remarkable increase as the price of the precious metal continues to hit extraordinary heights, driving the NYSE Arca Gold Bugs Index up by 4.1 percent to an all-time closing high. There was notable strength in computer hardware and semiconductor stocks, with the NYSE Arca Computer Hardware Index increasing by 4.0 percent and the Philadelphia Semiconductor Index climbing by 3.0 percent. Commercial real estate, oil service, and biotechnology stocks showed notable strength today, finishing higher with most other major sectors.