U.S. stock futures rose as a rebound in chip stocks eased market tensions, following strong earnings from TSMC. The S&P 500 futures increased by 0.4%, and Nasdaq 100 futures climbed 0.9%, while Dow Jones futures remained mostly flat.
Chipmakers led the gains after TSMC (TSM, Financial) reported a 54% increase in quarterly earnings, which surpassed expectations. This positive news helped offset previous concerns after ASML Holding had lowered its 2025 earnings guidance. The Stoxx 600 index also saw an increase of 0.7%.
Analysts suggested that TSMC's earnings helped alleviate earlier worries in the semiconductor sector following ASML's disappointing report. The outlook remains favorable, especially as central banks in developed markets continue to roll back restrictive measures at a rapid pace.
The European Central Bank is expected to announce a policy decision soon, with markets anticipating another 25 basis point reduction in the benchmark interest rate to 3.25%. Ahead of the data release, the yield on 10-year U.S. Treasuries rose by 2 basis points to 4.03%.
