U.S. equity index futures were pointing to a slightly higher start on Friday, suggesting stocks could build on the rebound recorded in the previous session.
Markets may continue to find support from Thursday’s upward move, which was fueled by a positive response to earnings from companies including Taiwan Semiconductor (NYSE:TSM), Goldman Sachs (NYSE:GS) and Morgan (NYSE:MS).
Even so, buying appetite could remain restrained as investors stay alert to mounting geopolitical risks around the globe.
President Donald Trump’s remarks about taking control of Greenland remain in focus, particularly after European troops arrived in the territory as a show of backing.
Traders are also closely tracking developments in Venezuela, unrest in Iran, and the ongoing conflict between Russia and Ukraine.
After posting solid gains for much of Thursday’s session, equities pared some of their advances later in the day but still finished largely higher.
All three major indexes closed in positive territory, recovering part of the losses seen over the prior two sessions.
The Dow rose 292.81 points, or 0.6%, to 49,442.44, the Nasdaq added 58.27 points, or 0.3%, to 23,530.02, and the S&P 500 climbed 17.87 points, or 0.3%, to 6,944.47.
Early momentum on Wall Street was driven in part by strong interest in Taiwan Semiconductor (TSM), whose shares surged 4.4% following upbeat earnings.
The chipmaker rallied after reporting a sharp rise in fourth-quarter profits and unveiling capital expenditure plans that topped expectations, bolstering confidence in the artificial intelligence theme.
“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.”
Sentiment also received a boost from U.S. labor market data, after the Labor Department reported an unexpected drop in first-time unemployment claims for the week ended January 10.
According to the Labor Department, initial jobless claims declined to 198,000, down 9,000 from the previous week’s revised figure of 207,000.
Economists had forecast claims would rise to 215,000 from the previously reported 208,000.
Airline stocks were among the strongest performers, with the NYSE Arca Airline Index jumping 2.6%.
Semiconductor stocks also remained firm more broadly, as reflected by a 1.8% gain in the Philadelphia Semiconductor Index.
Financials, networking, and utilities also posted solid advances, while pharmaceutical, oil, and biotechnology stocks lagged behind.
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