US equity futures traded unevenly on Thursday, with modest gains in contracts tied to the S&P 500 and Nasdaq offset by slight declines in Dow futures. Investor attention centred on comments from President Donald Trump regarding Federal Reserve leadership, blockbuster earnings from chipmaker TSMC (NYSE:TSM), and a fresh round of US bank results due before the opening bell. Oil prices, meanwhile, moved sharply lower amid easing concerns around Iran.
Futures struggle for direction
Wall Street futures hovered close to flat as markets balanced geopolitical headlines against early signals from the earnings season.
At 02:47 ET, Dow futures were down 29 points, or 0.1%, while S&P 500 futures edged up 0.1% and Nasdaq 100 futures gained 0.2%.
The mixed tone followed a weaker prior session on Wall Street, where technology stocks dragged indices lower and investors locked in profits after large bank earnings. US Treasuries found support, pushing yields lower across several maturities, helped by a softer-than-expected producer price index reading and the slide in crude oil.
Trump rules out immediate move against Powell
President Donald Trump told Reuters that he “doesn’t have any plan” to remove Federal Reserve Chair Jerome Powell, despite the Justice Department opening a criminal investigation involving the central bank chief.
Trump added that it was “too early” to decide on next steps, saying the White House is currently in “a little bit of a holding pattern” and that “we’re going to determine what to do.”
Powell’s disclosure that he had received a DOJ subpoena has raised renewed questions about the Fed’s independence. Powell has denied any wrongdoing, arguing that the investigation is intended to influence monetary policy — an area where Trump has repeatedly pushed for faster and deeper interest rate cuts.
When asked whether undermining the Fed’s independence could weaken the dollar or stoke inflation, Trump responded bluntly: “I don’t care.”
Trump also suggested he would favour appointing one of “the two Kevins” — former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett — when Powell’s term ends in May. He appeared to dismiss Treasury Secretary Scott Bessent as a potential successor, saying “he wants to stay where he is.”
TSMC delivers record Q4 on AI demand
Taiwan Semiconductor Manufacturing Co. reported a stronger-than-expected fourth quarter, posting record profits as demand for advanced chips used in artificial intelligence applications continued to surge.
The world’s largest contract chipmaker also lifted its outlook for capital expenditure, signalling aggressive expansion plans to keep pace with AI-driven demand. TSMC now expects 2026 capital spending of between $52 billion and $56 billion, up sharply from $40.9 billion in 2025, CFO Wendell Huang said on the post-earnings call.
Huang cautioned that margins could come under pressure over the medium to long term as capacity is built out, particularly overseas. CEO C.C. Wei echoed this view, flagging “significantly higher” capital expenditure and operating costs in the years ahead.
Net profit for the three months to December 31 reached a record T$505.74 billion ($16 billion), comfortably above Bloomberg estimates of T$467.0 billion and well ahead of the T$374.68 billion recorded a year earlier.
Bank earnings remain in focus
Attention now turns to additional US bank earnings, with results from Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) due before markets open.
These releases will cap a busy week for Wall Street’s biggest lenders, following updates from JPMorgan Chase, Bank of America, Citigroup and Wells Fargo. Investors view bank earnings as key indicators of economic momentum and corporate confidence at the start of 2026.
So far, bank executives have described the US economy as resilient, despite uncertainty linked to tariffs, persistent inflation and signs of cooling in the labour market. Combined full-year profits at JPMorgan, Bank of America, Citigroup and Wells Fargo totalled $123.2 billion in 2025, up nearly 5% from 2024, according to the Wall Street Journal.
Oil prices slide as Iran fears ease
Oil prices fell sharply, snapping a five-day rally after Trump struck a more measured tone on Iran, easing concerns over near-term supply disruptions.
Brent crude dropped 3.5% to $64.20 a barrel, while US West Texas Intermediate fell 3.4% to $59.92. The pullback followed a surge of more than 10% over the previous five sessions, when prices hit multi-month highs on fears that unrest in Iran could trigger US military action and disrupt production or shipping routes.
Trump said on Wednesday that he had been told killings linked to Iran’s crackdown on nationwide protests were subsiding and that he believed there was currently no plan for large-scale executions.
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