Updated 1 min read
US stocks wavered on Thursday as investors took stock of the AI boom and awaited key earnings reports, while an escalation in the US-Iran war continued to weigh.
Futures on the Dow Jones Industrial Average (YM=F) rose 0.2%, while S&P 500 (ES=F) futures fell 0.2%. Contracts for the Nasdaq-100 (NQ=F) declined by 0.7% as chip stocks came under pressure for a second day.
Semiconductor stocks continued to slide after Taiwan Semiconductor Manufacturing Company’s (TSM) robust earnings failed to impress markets that have cycled through risk-on and risk-off sentiment as investors scrutinize high valuations. TSMC reported record second quarter revenue and lifted its capex spending outlook for the year, but the stock fell in premarket trading after the company warned of higher prices.
UnitedHealth Group (UNH) also reported a Q2 earnings beat, as did GE Aerospace (GE) before the opening bell, while Netflix’s (NFLX) second quarter report highlights the earnings calendar after the close.
Investors, meanwhile, continue to monitor oil’s movement through the Strait of Hormuz after the US launched its latest wave of airstrikes on Iran on Wednesday. The Wall Street Journal reported Wednesday that Trump was briefed by aides on options to expand the conflict, including by increasing bombing and deploying ground forces.
In economic data, retail sales figures will gauge consumer spending, while jobless claims data will provide an update on the labor market. Both indicators will be released at 8:30 a.m. ET.
