Futures Pointing To Initial Strength On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to initial strength on Wall Street on Thursday, with stocks likely to see further upside after ending yesterday's volatile session mostly higher.

The markets may benefit from continued optimism the artificial intelligence trade, as Taiwan Semiconductor (TSM) is jumping by 2.3 percent in pre-market trading after reporting a bigger than expected surge in third quarter profits amid strong AI chip demand.

Taiwan Semiconductor, which produces chips for Nvidia (NVDA), also raised its forecast for full-year revenue growth and reiterated plans to commit up to $42 billion to capital expenditures by the end of the year.

Major AI players Nvidia and Broadcom (AVGO) are also seeing significant pre-market strength following the news from Taiwan Semiconductor.

Dow component Salesforce (CRM) is also surging by 6.5 percent in pre-market trading after the cloud-based software company forecast stronger than expected revenue of over $60 billion in 2030.

Stocks showed wild swings over the course of the trading day on Wednesday, extending the substantial volatility seen during Tuesday's session. The major averages spent the day bouncing back and forth across the unchanged line.

While the Nasdaq and the S&P 500 ended the day firmly in positive territory, the narrower Dow posted a slim loss. The Dow edged down 17.15 points or less than a tenth of a percent to 46,253.31, but the S&P 500 rose 26.75 points or 0.4 percent to 6,671.06 and the Nasdaq climbed 148.38 points or 0.7 percent to 22,679.08.

The continued volatility on Wall Street came as traders weighed upbeat earnings news against concerns about U.S.-China trade tensions and lingering worries about valuations.

Investment banking giant Morgan Stanley (MS) surged by 4.7 percent to a record closing high after reporting better than expected third quarter results.

Shares of Bank of America (BAS) also shot up by 4.4 percent after the company reported third quarter results that exceeded analyst estimates on both the top and bottom lines.

U.S.-listed shares of ASML (ASML) also saw significant strength after the Dutch semiconductor equipment maker reported mixed third quarter results but said it expects 2026 total net sales to exceed 2025.

Meanwhile, traders kept an eye on any comments from President Donald Trump about U.S. trade with China, which have been a key driver of market sentiment in recent sessions.

In U.S. economic news, the Federal Reserve Bank of New York released a report this morning showing New York manufacturing activity has seen a significant turnaround in the month of October.

The New York Fed said its general business conditions index surged to a positive 10.7 in October after plunging to a negative 8.7 in September, with a positive reading indicating growth. Economists had expected the index to climb to a negative 1.8.

Meanwhile, the Federal Reserve's Beige Book said economic activity in the U.S. has shown little change since early September.

The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, said three districts reported slight to modest growth in activity, five reported no change, and four noted a slight softening.

Gold stocks moved sharply higher as the price of the precious metal continues to soar to record highs, driving the NYSE Arca Gold Bugs Index up by 4.1 percent to a record closing high.

Substantial strength was also visible among computer hardware and semiconductor stocks, with the NYSE Arca Computer Hardware Index and the Philadelphia Semiconductor Index surging by 4.0 percent and 3.0 percent, respectively.

Commercial real estate, oil service and biotechnology stocks also saw notable strength on the day, closing higher along with most of the other major sectors.

Commodity, Currency Markets

Crude oil futures are climbing $0.40 to $58.67 a barrel after falling $0.43 to $58.27 a barrel on Wednesday. Meanwhile, after jumping $38.20 to $4,201.60 an ounce in the previous session, gold futures are surging $61.60 to $4,263.20 an ounce.

On the currency front, the U.S. dollar is trading at 151.20 yen versus the 151.04 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1651 compared to yesterday's $1.1646.

Asia

Asian stocks rose on Thursday to extend gains from the previous session amid growing expectations of imminent U.S. Federal Reserve rate cuts. Regional gains, however, remained capped somewhat by rising Sino-U.S. tensions.

China's Shanghai Composite Index fluctuated before ending 0.1 percent higher at 3,916.23. Trade tensions kept investors on edge after U.S. Treasury Secretary Scott Bessent slammed Beijing's rare earth export curbs as "China versus the world," vowing Washington and its allies would "neither be commanded nor controlled."

U.S. Trade Representative Jamieson Greer called China's new rare earth export restrictions "a global supply-chain power grab," while Trump stated that the United States is in a trade war with China.

Hong Kong's Hang Seng Index ended marginally lower at 25,888.51 after data showed China's new bank loans rose less than expected in September.

Japanese markets ended sharply higher after the Japan Innovation Party emerged as a possible coalition partner for the LDP ahead of a parliamentary vote to decide the prime minister expected next week.

Investors shrugged off data that showed Japanese core machinery orders unexpectedly declined month-over-month in August.

The Nikkei 225 Index jumped 1.3 percent to 48,277.74, while the broader Topix Index closed up 0.6 percent at 3,203.42. Tech stocks surged, with SoftBank Group spiking 8.6 percent and Tokyo Electron adding 4.1 percent.

Renesas Electronics soared 8.2 percent after reports suggested that the chip maker is working with bankers to explore a sale of its timing division.

Seoul stocks hit a new peak as tech stocks surged on optimism over AI-driven demand. The Kospi shot up 2.5 percent to 3,748.37. Samsung Electronics climbed 2.8 percent and SK Hynix soared 7.1 percent to record high levels.

Automakers also followed suit on optimism over a possible trade deal with the United States. Hyundai Motor rallied 8.3 percent and its smaller affiliate Kia Corp. advanced 7.2 percent.

Australian markets hit a record closing high after data showed unemployment rate rose to a four-year high of 4.5 percent in September, bolstering views of an interest-rate cut next month.

The benchmark S&P/ASX 200 Index climbed 0.9 percent to 9,068.40, with financials, property and gold miners leading the charge. The broader All Ordinaries Index settled 0.8 percent higher at 9,375.90.

Oil & gas producer Santos rose 0.8 percent despite lowering its 2025 production guidance. Wealth manager AMP surged 8.5 percent after a strong quarterly update.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index rose 0.6 percent to 13,389.10, extending gains for a second day running.

Europe

European stocks are turning in a mixed performance on Thursday, as investors weigh renewed tensions in the U.S.-China trade dispute over rare earth controls against growing expectations of imminent U.S. Federal Reserve rate cuts.

While the French CAC 40 Index is up by 0.9 percent, the German DAX Index is just below the unchanged line and the U.K.'s FTSE 100 Index is down by 0.2 percent.

Dragerwerk has surged after the German medical and safety technology manufacturer gave a more optimistic outlook for the full year following growth in the past quarter.

Laboratory and pharmaceutical supplier Sartorius has also moved sharply higher after raising its full-year guidance.

Pernod Ricard has also jumped. After a tough first quarter, the French spirits maker said it expects sales to improve in fiscal year 2026.

Nestle has also spiked. To reduce costs and boost sales, the Swiss food and beverage giant has unveiled plans to cut 16000 jobs globally over two years.

On the other hand, U.K.-based hospitality group Whitbread has slumped after reporting a 7 percent drop in half-year profit.

U.S. Economic News

The Federal Reserve Bank of Philadelphia released a report on Thursday showing a substantial pullback by its reading on regional manufacturing activity in the month of October.

The Philly Fed said its diffusion index for current general activity plunged to a negative 12.8 in October after spiking to a positive 23.2 in September, with a negative reading indicating contraction. Economists had expected the index to slump to a positive 10.0.

With the much bigger than expected decrease, the Philly Fed index tumbled to its lowest level since hitting a negative 26.4 in April.

Meanwhile, the Philly Fed said the survey's future indicators suggest widespread expectations for growth over the next six months, as the diffusion index for future general activity rose to a five-month high of 36.2 in October from 31.5 in September.

At 9 am ET, Federal Reserve Governor Christopher Waller is due to speak on the economic outlook at the C. Peter McColough Series on International Economics.

Federal Reserve Governor Michael Barr is also scheduled to speak on "Stablecoins" at 2025 DC Fintech Week at 9 am ET.

Also at 9 am ET, Federal Reserve Governor Stephen Miran is due to participate in a conversation before the 2025 Institute of International Finance Annual Membership Meeting.

The National Association of Home Builders is scheduled to release its report on homebuilder confidence in the month of October at 10 am ET. The housing market index is expected to inch up to 33 in October after holding at 32 in September.

Also at 10 am ET, Federal Reserve Vice Chair for Supervision Michelle Bowman is due to speak virtually at the 2025 Federal Reserve Stress Testing Research Conference.

The Treasury Department is scheduled to announce the details of this month's auction of twenty-year bonds at 11 am ET.

At 12 pm ET, the Energy Information Administration is due to release its report on crude oil inventories in the week ended October 10th. Crude oil inventories are expected to inch up by 0.1 million barrels after climbing by 3.7 million barrels in the previous week.

Richmond Federal Reserve President Thomas Barkin is due to before the Richmond Association for Business Economics at 12:45 pm ET.

At 4:15 pm ET, Fed Governor Miran is scheduled to participate in a conversation before the Semafor Fall 2025 World Economy Summit at 4:15 pm ET.

Richmond Fed President Barkin is due to speak before the Richmond Risk Management Association at 4:30 pm ET.

At 6 pm ET, Minneapolis Federal Reserve President Neel Kashkari is scheduled to participate in a town hall hosted by Elevate Rapid City.