U.S. equity futures moved slightly higher early Thursday, as strong corporate results and renewed geopolitical tensions shaped sentiment across global markets. Chipmaking giant Taiwan Semiconductor Manufacturing Company (NYSE:TSM) delivered a record-breaking third quarter on booming AI demand, while Oracle Corporation (NYSE:ORCL) prepared to give updated guidance at its closely watched analyst meeting. Meanwhile, gold climbed to another all-time high.
Futures Edge Higher
By 02:51 ET, Dow futures were up 58 points (0.1%), S&P 500 futures gained 12 points (0.2%), and Nasdaq 100 futures added 88 points (0.4%).
On Wednesday, the S&P 500 and the Nasdaq Composite advanced, while the Dow Jones Industrial Average slipped slightly, as early gains softened throughout the session. Markets were digesting upbeat earnings from ASML Holding N.V., Bank of America, and Morgan Stanley.
Geopolitical tensions also remained in the spotlight. A report in the The Wall Street Journal suggested Beijing is “willing to hold a firmer line” in negotiations with Washington, expecting that sustained uncertainty could pressure markets and push President Donald Trump toward a deal.
U.S. Treasury Secretary Scott Bessent said that “equity volatility would not alter the Trump administration’s stance” but emphasized that the White House does not seek to escalate tensions further. He added that Trump remains open to meeting President Xi Jinping in South Korea later this month.
TSMC Posts Record Q3 Profit
Taiwan Semiconductor Manufacturing Company reported its highest-ever third-quarter profit, powered by surging demand for AI chips.
The chipmaker — which counts Nvidia Corporation (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL) among its key clients — posted a net profit of T$452.30 billion ($14.75 billion) for the three months ended September 30, surpassing the T$417.7 billion estimate from Reuters/LSEG.
Revenue rose 30% year-on-year to T$989.92 billion ($32.30 billion), while gross margin reached 59.5%. TSMC forecast that AI-driven demand would accelerate further, projecting current-quarter revenue growth of up to 24%. It also reaffirmed its capital spending outlook of up to $42 billion in 2025, despite potential tariff and currency risks.
Oracle Analyst Meeting in Spotlight
Oracle Corporation will meet with analysts Thursday during the final day of its AI conference in Las Vegas.
Analysts at Vital Knowledge said they expect the company to issue fresh financial guidance, noting that “the real focus will be on margins and cash flow.” Oracle’s dual CEOs recently reaffirmed their commitment to massive data center investments, telling the Wall Street Journal that these are crucial to “bolster the computing capacity needed to make AI models more useful for businesses.”
Earlier this week, Oracle announced that its cloud services would be powered by Advanced Micro Devices’ (NASDAQ:AMD) upcoming MI450 AI chips. Last month, the company’s shares jumped after revealing an additional $317 billion in future contract revenue, much of it linked to its deal with OpenAI.
Philly Fed Data Ahead
Investors will also be watching Thursday’s release of the Federal Reserve Bank of Philadelphia manufacturing index, expected to come in at 8.6 in October, down from 23.2 in September. A positive reading still signals expansion.
The prolonged U.S. government shutdown has delayed the publication of key economic reports, pushing policymakers to rely on alternative indicators. On Wednesday, the Fed’s “Beige Book” showed little change in economic activity and stable employment, but highlighted signs of “increased layoffs and a pullback in spending by lower- and middle-class households.”
Gold Hits Another Record
Gold prices extended their rally to fresh record highs, lifted by rising expectations of rate cuts from the Federal Reserve System and escalating U.S.-China tensions.
Spot gold gained 0.5% to $4,230.48 per ounce by 03:48 ET, after touching $4,241.99 earlier in the session. U.S. gold futures climbed 1.0% to $4,244.71. The metal has surged more than 6% over the past week.
Markets are pricing in a near-certain 25 basis-point cut in October, followed by another in December, after Fed Chair Jerome Powell adopted a more dovish tone this week. Lower interest rates typically boost demand for non-yielding assets like gold.
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