The major U.S. index futures indicate a modestly higher opening on Friday, suggesting that stocks are set to continue the rebound observed in the prior session. The markets may continue to benefit from the upward momentum observed on Thursday, which was fueled by a favorable response to earnings from companies such as Taiwan Semiconductor, Goldman Sachs, and Morgan. While buying interest appears to be somewhat subdued, traders are closely monitoring the escalating geopolitical tensions globally. President Donald Trump’s assertions regarding the potential acquisition of Greenland remain a focal point of discussion, as European military forces have commenced their deployment to the region in a demonstration of solidarity. Market participants remain vigilant regarding the evolving situation in Venezuela, the political turmoil in Iran, and the persistent conflict between Russia and Ukraine.
Following a robust performance throughout much of the session, equities surrendered some gains in the latter portion of the trading day on Thursday, yet largely maintained an upward trajectory. The major averages concluded the day in positive territory, recovering some ground after the pullback observed in the preceding two sessions. The Dow increased by 292.81 points, reflecting a rise of 0.6 percent, reaching a level of 49,442.44. The Nasdaq experienced an uptick of 58.27 points, corresponding to a 0.3 percent gain, settling at 23,530.02. Meanwhile, the S&P 500 saw an increase of 17.87 points, also a 0.3 percent rise, concluding at 6,944.47.
The early strength on market partly reflected a positive reaction to earnings news from Taiwan Semiconductor, with the chipmaker surging by 4.4 percent. Taiwan Semiconductor experienced a notable increase following the announcement of a significant rise in fourth quarter profits, alongside larger-than-anticipated capital expenditure plans, which bolstered renewed confidence in the artificial intelligence sector. Following the revenue update from last week, it was widely anticipated that TSMC would announce a record quarter; however, the specifics remain noteworthy,” remarked Russ Mould.”Not least the levels of capital expenditure TSMC is committing to, suggesting it is fully confident the AI boom has legs,” he added. “This is emphasized by the company’s forecast for 30% growth in 2026.”
Positive sentiment may also have been generated in response to a Labor Department report indicating that first-time claims for U.S. unemployment benefits unexpectedly declined in the week ending January 10th. The Labor Department reported that initial jobless claims declined to 198,000, representing a reduction of 9,000 from the prior week’s adjusted figure of 207,000. Analysts had anticipated an increase in jobless claims to 215,000, up from the 208,000 initially reported for the prior week. Airline stocks experienced a notable increase, as evidenced by the NYSE Arca Airline Index rising by 2.6 percent. Notable strength also remained evident among semiconductor stocks, as indicated by the 1.8 percent increase recorded by the Philadelphia Semiconductor Index. Financial, networking, and utilities stocks exhibited robust performances, whereas pharmaceutical, oil, and biotechnology stocks experienced declines.