December S&P 500 E-Mini futures and Nasdaq 100 E-Mini futures are up this morning as demand for artificial intelligence boosts market sentiment amid U.S.-China trade tensions. Chipmakers like Taiwan Semiconductor Manufacturing Co. reported record profits, driving stock index futures higher with heavyweights Nvidia and Broadcom also seeing gains.
Lower bond yields are further supporting stock index futures, with investors eagerly awaiting corporate earnings reports and Federal Reserve official remarks. In yesterday’s session, Wall Street saw mixed results, with Bunge Global surging over 12% and chip stocks like Advanced Micro Devices climbing over 9%.
Economic data showed the Empire State manufacturing index beat expectations in October, while the Fed’s Beige Book reported stable economic activity but noted concerns about rising input costs due to tariffs. Fed Governor Stephen Miran emphasized the need for quick interest rate cuts amid escalating trade tensions between the U.S. and China.
U.S. rate futures are pricing in a high probability of a 25 basis point rate cut at October’s monetary policy meeting. Corporate earnings season continues with notable reports from companies like Charles Schwab, Bank of NY Mellon, and U.S. Bancorp, although the government shutdown may delay some economic reports.
In international markets, the Euro Stoxx 50 Index is up as investors digest corporate earnings and await a confidence vote for French Prime Minister Sebastien Lecornu. U.K. and Italy released GDP and CPI data, while Asian markets closed in the green, with China’s Shanghai Composite Index slightly higher amid ongoing trade tensions with the U.S.
Japan’s Nikkei 225 Stock Index closed higher, tracking gains in U.S. markets and boosted by prospects of Sanae Takaichi becoming Japan’s next prime minister. Takaichi’s policies and discussions with opposition parties are influencing market sentiment, along with data showing a slight decline in core machinery orders.
Pre-market U.S. stock movers include Taiwan Semiconductor Manufacturing Co., Nvidia, Broadcom, J.B. Hunt Transport Services, Salesforce, and Hewlett Packard Enterprise. Earnings spotlight today features companies like Charles Schwab, Bank of NY Mellon, U.S. Bancorp, CSX, and Travelers, among others. Market participants are closely watching these developments for potential impacts on stock prices.
Read more at Yahoo Finance: Stocks Climb Before the Open on AI Optimism, Earnings and Fed Speak in Focus