Wall Street Futures Rebound as TSMC Sparks AI Rally and Oil Prices Slide

U.S. stock futures moved mostly higher on Thursday, signaling a potential rebound after two straight losing sessions on Wall Street. A powerful rally in chip stocks—sparked by a blockbuster earnings report from Taiwan Semiconductor Manufacturing—helped restore confidence, particularly in the technology sector.

Futures tied to the S&P 500 rose 0.4%, while Nasdaq-100 futures jumped 0.9%, leading the advance. Dow Jones Industrial Average futures lagged, slipping about 0.1%, reflecting continued caution in more defensive corners of the market.

Semiconductor shares dominated early trading after Taiwan Semiconductor Manufacturing (TSMC) posted another record quarter. The world’s largest contract chipmaker reported a 35% surge in fourth-quarter profit, beating expectations as demand for artificial intelligence chips continued to soar.

TSMC shares jumped nearly 6% in premarket trading, setting off a ripple effect across the chip sector. Micron Technology climbed roughly 3%, while AI heavyweights Nvidia and AMD each gained more than 1%. Chip-equipment maker ASML surged after TSMC announced plans to significantly increase capital spending, signaling long-term confidence in AI-driven growth.

TSMC also revealed plans to boost investment to $56 billion in 2026, reinforcing expectations that Big Tech’s spending on AI infrastructure is far from slowing down.

The rally came despite fresh trade headlines. On Wednesday, President Donald Trump signed a proclamation imposing a 25% tariff on certain semiconductors. However, markets appeared relieved that the levy will not apply to chips imported for building out the U.S. technology supply chain, limiting potential damage to AI and data center expansion.

That exemption helped ease concerns that trade policy could derail momentum in the semiconductor sector.

Financial stocks also provided support ahead of the opening bell. Morgan Stanley shares rose more than 1% after the bank reported fourth-quarter results that exceeded expectations. Goldman Sachs posted stronger-than-expected profits as dealmaking remained resilient, though its stock edged slightly lower in early trading.

Meanwhile, BlackRock impressed investors with earnings that topped forecasts and assets under management reaching a record $14 trillion, pushing its shares higher.

A sharp pullback in oil prices added another tailwind for equities. Brent crude and West Texas Intermediate futures both fell nearly 3%, easing inflation concerns and reducing pressure on consumers and businesses.

Oil had surged earlier in the week amid fears of supply disruptions tied to rising geopolitical tensions between the U.S. and Iran. Prices retreated after President Trump signaled the U.S. may hold back from military action, calming energy markets.

While markets found relief in falling oil prices, geopolitical risks remain on investors’ radar. Tensions involving Iran, as well as unresolved disputes between the U.S., Denmark, and Greenland over territorial control, continue to inject uncertainty into the global outlook.

At the same time, reports that Chinese authorities are restricting imports of Nvidia’s H200 chips weighed on tech sentiment earlier in the week, highlighting ongoing friction in U.S.-China technology relations.

Thursday’s move higher reflects a shift back toward growth and technology stocks after a tech-led selloff dragged markets lower the day before. Strong AI-driven earnings, solid bank results, and easing oil prices are helping stabilize sentiment—for now.

Investors will be watching upcoming economic data, including weekly jobless claims, along with more corporate earnings, to see whether this rebound can gain traction or if volatility is set to continue.