US stock futures signalled a higher open on Thursday, pointing to a possible rebound after two consecutive sessions of declines on Wall Street.
Technology stocks were expected to lead the advance, with futures linked to the Nasdaq 100 climbing around 1%, reflecting renewed investor appetite for growth names.
The brighter outlook for tech was supported in part by a strong market response to earnings from Taiwan Semiconductor (NYSE:TSM). Shares of the chipmaker rose more than 5% in pre-market trading after the company posted a sharp increase in fourth-quarter profits.
“After last week’s revenue update it was an open secret that TSMC would be reporting a record quarter but the details are still striking,” said Russ Mould, investment director at AJ Bell.
“Not least the levels of capital expenditure TSMC is committing to, suggesting it is fully confident the AI boom has legs,” he added. “This is underlined by the company’s guidance for 30% growth in 2026.”
On the economic front, fresh US labour market data offered additional support. The Labor Department reported that initial claims for unemployment benefits unexpectedly declined in the week ended January 10, falling to 198,000 from the prior week’s revised level of 207,000. Economists had forecast an increase to 215,000.
The tentative recovery follows another weak trading session on Wednesday, when stocks extended recent losses despite paring an early sell-off. The Nasdaq led the declines, dropping 238.12 points, or 1.0%, to 23,471.75. The S&P 500 fell 37.14 points, or 0.5%, to 6,926.60, while the Dow Jones Industrial Average edged down 42.36 points, or 0.1%, to 49,149.63.
Recent market weakness has been partly attributed to rising geopolitical uncertainty, including renewed attention on developments involving Greenland, political unrest in Iran and the ongoing conflict between Russia and Ukraine.
Bank stocks also weighed on sentiment. Wells Fargo (NYSE:WFC) slid 4.6% after reporting better-than-expected fourth-quarter earnings but disappointing revenue. Bank of America (NYSE:BAC) dropped 3.8% despite beating forecasts, while Citigroup (NYSE:C) also moved sharply lower even after delivering stronger-than-expected results.
Earlier data from the Commerce Department showed US retail sales rose more than anticipated in November, increasing 0.6% on the month after a revised 0.1% decline in October. Excluding autos, sales advanced 0.5%, ahead of expectations for a 0.4% gain.
A separate Labor Department report showed producer prices increased modestly in November.
By sector, software stocks led losses in the previous session, pulling the Dow Jones US Software Index down 2.4% to its lowest closing level in eight months. Networking stocks also came under pressure, with the NYSE Arca Networking Index falling 1.6%. Airline and retail shares lagged, while energy stocks bucked the broader trend and posted solid gains.
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