US Chip Stocks to Rise as TSMC’s Results Are Applauded – Europe Market Wrap

US IT stocks were expected to recover some of this week’s losses, boosted by earnings from the world’s top chipmaker and the expectation of promising results from other major players in the sector.

Nasdaq 100 futures surged 0.4% in premarket trade following earnings that exceeded expectations and good forecasts from Taiwan Semiconductor Manufacturing, Nvidia, Advanced Micro Devices, and Super Micro Computer. On Wednesday, the Nasdaq index had its worst day since 2022, as investors worried about tighter US restrictions on companies that supply China with innovative semiconductor technology. Europe’s Stoxx 600 index rose 0.3%.

Analysts say a relatively strong earnings season, as well as prospects of interest rate reduction from the Fed and other central banks, are helping to boost morale. Later in the day, Netflix, the world’s largest streaming service, will be the first major US technology business to publish results, with continued global subscriber growth forecast.

A Dollar index fell to its lowest level in two months, while the Yen remained stable following a recent gain that was mainly attributed to Japanese government purchases. The Euro dropped marginally ahead of an ECB meeting, which is expected to imply that the next rate cut will occur in September.