Stocks Rebound: TSMC Leads Tech Surge Amid Mixed Corporate Earnings

Nasdaq and S&P 500 futures rose on the back of TSMC's optimistic revenue forecast, prompting gains in chip and tech stocks. Meanwhile, Domino's Pizza and D.R. Horton saw declines after disappointing financial reports. Jobless claims unexpectedly increased, raising concerns about the job market. Warner Bros Discovery considered a business split-up plan.

Nasdaq and S&P 500 futures were set to open higher Thursday, buoyed by an optimistic forecast from Taiwan Semiconductor Manufacturing (TSMC), which lifted chip stocks after a sharp sell-off in the previous session. Following an increase in demand for AI chips, TSMC's shares rose 2.4% in premarket trading.

This positive momentum spread to chipmakers like Advanced Micro Devices, Intel, and Nvidia, which recorded notable gains. However, the technology sector still faces risks, notably from trade tensions between the U.S. and China. Paul Nolte, senior wealth adviser at Murphy & Sylvest, remarked on the volatility in the sector.

Conversely, Domino's Pizza and homebuilder D.R. Horton experienced declines due to underwhelming quarterly reports. The Labor Department reported an unexpected rise in jobless claims, hinting at a cooling job market and potential Federal Reserve rate cuts. In other news, Warner Bros Discovery surged on speculation about a potential business split-up.

(With inputs from agencies.)