Chip Stocks Surge as TSMC Sparks Market Rally

U.S. stock index futures advanced, driven by TSMC's strong performance which boosted chipmakers. BlackRock reported profit gains, while financial stocks faced pressure over potential interest rate caps. Analysts expect S&P 500 companies to show significant profit growth, with labor market insights and policy signals under close watch.

U.S. stock index futures climbed Thursday, primarily driven by a robust performance from TSMC, lighting up the chipmaker sector. This positive momentum overshadowed a tough prior session for Wall Street's major indices, with the S&P 500 and Nasdaq suffering their steepest declines of the year.

Notable premarket moves included Nvidia's 1.5% rise, with Broadcom and Micron up 2.5% and 3.5%, respectively. Toolmakers Applied Materials and Lam Research surged 8.3% each, buoyed by TSMC's strong growth outlook and investor optimism for U.S. manufacturing expansion.

Amid this rally, financial stocks faced downward pressure due to proposed credit card interest rate caps, even as top banks posted solid profits. Investors await insights from upcoming earnings reports and Federal Reserve guidance, with eyes on fundamentals as they assess the continuation of the current market rally.

(With inputs from agencies.)