US stock futures edge lower with TSMC earnings on tap

U.S. stock index futures fell slightly in evening deals on Wednesday, with technology shares steady before closely watched earnings from chipmaking giant TSMC, which are set to offer more cues on the artificial intelligence trade.

Futures steadied after a positive session on Wall Street, with U.S. stock benchmarks remaining close to record highs hit earlier in the week. Strong bank earnings were a key point of support, helping investors look past a weak print from chipmaking bellwether ASML (NASDAQ:ASML).

S&P 500 Futures fell 0.1% to 5,880.25 points, while Nasdaq 100 Futures fell 0.2% to 20,318.0 points by 19:07 ET (23:07 GMT). Dow Jones Futures fell 0.1% to 43,312.0 points.

TSMC earnings awaited for more AI cues
Taiwan’s TSMC (NYSE:TSM)- the world’s biggest contract chipmaker- is set to report its September quarter earnings before the open on Thursday.

A Reuters survey forecast net profit to jump 42% to T$300.1 billion ($9.33 billion), with the chipmaker expected to have benefited from robust AI-fueled demand.

Last week, monthly revenue figures from TSMC pointed to a strong print for the quarter.

The firm, which counts Apple Inc (NASDAQ:AAPL) and NVIDIA Corporation (NASDAQ:NVDA) among its clients, is considered as a bellwether for the chipmaking industry, and is highly exposed to the AI sector. Its valuation surged sharply over the past year on the AI boom.

TSMC’s earnings come just days after weak guidance from chipmaking equipment giant ASML rattled technology and chip stocks, although they found some relief on Wednesday.

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TSMC rose 0.9% in aftermarket trade, while market darling Nvidia steadied after a 3.5% jump during the session.

Wall St close to record highs with earnings, retail sales on tap
Wall Street indexes remained close to record highs hit earlier this week, with the third-quarter earnings season set to continue in the coming days with more key prints.

The S&P 500 rose 0.5% to 5,842.47 points, while the Dow Jones Industrial Average rose 0.8% to 18,366.51 points on Wednesday, with both indexes hovering just below recent peaks. The NASDAQ Composite rose 0.3% to 18,366.51 points.

Streaming giant Netflix Inc (NASDAQ:NFLX) will report its earnings on Thursday, along with fund manager Blackstone Inc (NYSE:BX) and biotechnology firm Intuitive Surgical Inc (NASDAQ:ISRG). This precedes earnings from tech giants Alphabet Inc (NASDAQ:GOOGL) and Tesla Inc (NASDAQ:TSLA) in the first half of next week, along with several other U.S. majors.

Among aftermarket movers, Alcoa Corp (NYSE:AA) jumped more than 5% after the aluminum producer clocked stronger-than-expected earnings.

Focus this Thursday will also be on retail sales and industrial production for more cues on the U.S. economy, amid growing conviction that the Federal Reserve will cut interest rates at a slower pace in the coming months.