Chipmaker Rally Sparks Nasdaq Surge Amid Mixed Earnings

The Nasdaq and S&P 500 are poised for gains following TSMC's strong quarterly results, which boosted chip stocks. Morgan Stanley and Goldman Sachs conclude big banks' earnings season with mixed results as financial stocks face pressures. Investors focus on fundamentals with earnings season in progress.

The Nasdaq and S&P 500 set to open higher on Thursday, driven by TSMC's impressive quarterly results, which catalyzed a rally in semiconductor stocks. Nvidia, Broadcom, and Micron registered premarket gains, while chipmaking tool companies like Applied Materials surged 8.3%.

Morgan Stanley and Goldman Sachs closed out the banking earnings season, with the former's profit rising, despite headwinds in the financial sector. Investors remain cautious about a proposed cap on credit card interest rates, impacting financial stock performance despite strong profits.

As fourth-quarter earnings season unfolds, investors shift focus from tech to fundamentally strong stocks. Labor Department data showed jobless claims below estimates, while traders anticipate potential rate cuts. Market participants await comments from Federal Reserve policymakers later today.

(With inputs from agencies.)