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Investing.com - U.S. stock futures edge up after equities recorded a mixed close in the prior session. Artificial intelligence euphoria powers chipmaker TSMC to its highest-ever third-quarter profit, while Oracle is expected to unveil a new financial outlook as the cloud software group bets big on AI. Meanwhile, gold surges to another all-time peak.
1. Futures rise
U.S. stock futures were pointing higher on Thursday, with investors weighing better-than-expected earnings from semiconductor giant TSMC as well as a renewed trade fight between the U.S. and China.
By 02:51 ET (06:51 GMT), the Dow futures contract had gained 58 points, or 0.1%, S&P 500 futures had climbed by 12 points, or 0.2%, and Nasdaq 100 futures had risen by 88 points, or 0.4%.
The benchmark S&P 500 and tech-heavy Nasdaq Composite advanced on Wednesday, while the blue-chip Dow Jones Industrial Average ended slightly lower. An initial surge in equities waned somewhat during the session, as markets poured through broadly upbeat earnings from European chip titan ASML and major Wall Street lenders Bank of America and Morgan Stanley.
Ongoing trade tensions between the U.S. and China also remained in focus. An article in the Wall Street Journal, quoting people close to decision-makers in China, said Beijing is willing to hold a firmer line in talks with Washington, believing that more turmoil could dent stock markets and force U.S. President Donald Trump to the negotiating table.
U.S. Treasury Secretary Scott Bessent said equity volatility would not alter the Trump administration’s stance in the stand-off, although he insisted that the White House does not want to see the trade conflict escalate further. He added that Trump is still ready to meet Chinese counterpart Xi Jinping in South Korea later this month.
2. TSMC logs all-time high third-quarter income
Taiwan Semiconductor Manufacturing Co., or TSMC, clocked a record third-quarter profit on Thursday, powered by soaring demand for AI infrastructure.
TSMC, whose clients include AI-darling Nvidia and iPhone-maker Apple, reported a net profit of T$452.30 billion ($14.75 billion) for the three months to September 30. The figure was higher than a Reuters/LSEG estimate of T$417.7 billion.
Markets were primed for a strong reading, after TSMC disclosed a 30% spike in its quarterly revenue last week. Revenue rose to T$989.92 billion ($32.30 billion), while gross margin stood at 59.5%.
The world’s biggest manufacturer of cutting-edge AI chips also predicted that euphoria around the nascent technology would gather even more pace, projecting a jump in current-quarter revenue by as much as 24%. It also reiterated its forecast for capital spending of up to $42 billion this year, despite potential headwinds from sweeping U.S. tariffs and currency fluctuations.
3. Oracle to hold analyst meeting
Elsewhere, Oracle is due to hold a meeting with financial analysts at the cloud software group on the final day of its AI-focused conference in Las Vegas on Thursday.
Analysts at Vital Knowledge said they anticipate the company will provide updated financial guidance at the gathering, but flagged that since management has already offered new forecasts for its cloud services unit for the next four years, "the real focus will be on margins and cash flow."
Oracle’s new dual chief executives backed the firm’s plans to shell out huge investments in data centers earlier this week, telling the Wall Street Journal that doing so will bolster the computing capacity needed to make AI models more useful for businesses.
On Tuesday, Oracle also said it would offer cloud services supported by Advanced Micro Devices’ upcoming MI450 AI chips, in a bid to further its computing firepower.
Last month, shares of Oracle spiked after it announced that future contract revenue had spiked by an additional $317 billion in the quarter ended on August 31, much of it linked to a deal with ChatGPT-maker OpenAI.
4. Philly Fed’s factory gauge ahead
Traders will be keeping tabs on a gauge of manufacturing activity in the U.S. Mid-Atlantic region on Thursday, as a prolonged U.S. government shutdown causes a delay to fresh economic data.
The Federal Reserve Bank of Philadelphia’s monthly manufacturing index is tipped to stand at 8.6 in October, down from a reading of 23.2 in the prior month. A positive reading suggests expansion in the sector.
Some Fed policymakers have been searching for alternative economic indicators to help them calibrate policy during the dearth of official figures. The central bank is set to make its next decision on interest rates later this month.
On Wednesday, the Fed’s "Beige Book" report, which compiles qualitative data like surveys and interviews, found that U.S. economic activity was little changed and employment stable in recent weeks. However, signs of increased layoffs and a pullback in spending by lower- and middle-class households were beginning to crop up.
5. Gold notches new record high
Gold prices rose to fresh record highs, marking a fourth straight session of all-time peaks, as rising expectations for Fed rate cuts and the U.S.-China trade tensions lifted demand for the safe-haven metal.
Spot gold rose 0.5% to $4,230.48 per ounce by 03:48 ET, after reaching as high as $4,241.99 earlier in the session. U.S. gold futures climbed 1.0% to $4,244.71.
Bullion has jumped by more than 6% over the past one-week period.
Traders are now pricing in a near-certain 25 basis-point rate cut by the Fed in October, followed by another in December, after Chair Jerome Powell struck a more dovish tone in remarks this week. Non-yielding gold tends to perform better in low rate environments.