News in Brief: US Futures Rise as TSMC Earnings Supercharge AI Stocks

News in Brief: US Futures Rise as TSMC Earnings Supercharge AI Stocks

Chipmaker results lift global markets as investors assess bank earnings, gold and oil prices

US stock futures moved higher on Friday, supported by strong earnings from the world’s leading contract chipmaker and renewed optimism around artificial intelligence. Investors are also watching closely for fresh US bank results, while gold prices ease from record highs and oil stabilises after recent losses.

US Stock Futures Edge Higher

Futures linked to major US indices pointed upwards in early trading, reflecting improved sentiment after a strong Wall Street session.

By mid-morning UK time:

• Dow Jones Industrial Average futures were up around 0.2%
• S&P 500 futures rose roughly 0.4%
• Nasdaq 100 futures gained about 0.5%

Markets were lifted by continued enthusiasm for artificial intelligence, following better-than-expected earnings from Taiwan Semiconductor Manufacturing Co earlier in the week.

However, analysts noted that gains faded later in the previous session, with some established software firms coming under pressure amid increased competition from new AI products.

TSMC Shares Rise After Record Earnings

Shares in Taiwan Semiconductor Manufacturing Company climbed in Taipei trading after the company reported record fourth-quarter profits.

The stock rose nearly 3% in Taiwan, adding to strong gains seen in its US-listed shares. The results underlined robust demand for advanced chips used in artificial intelligence applications.

Chief executive C.C. Wei said demand from the AI sector remains strong, even as the company expects higher costs in 2026. TSMC continues to benefit from its role as a key supplier to major technology firms such as Nvidia and Apple.

The results provided a boost to the broader AI trade, lifting shares across the semiconductor and equipment sector.

US Bank Earnings in Focus

Attention now turns to earnings from several US banks, with results due before the opening bell.

Banks reporting include:

• PNC Financial Services
• State Street
• M&T Bank

Earlier earnings from major lenders highlighted how market volatility in 2025 boosted trading revenues and dealmaking activity. Executives at firms such as Morgan Stanley and JPMorgan Chase have struck an optimistic tone on economic resilience heading into 2026.

Gold Prices Pull Back From Record Highs

Gold prices dipped slightly after hitting record levels earlier in the week. The pullback came as steady US labour market data reduced expectations of imminent interest rate cuts by the Federal Reserve, while easing tensions in Iran lowered safe-haven demand.

Despite the modest decline, gold remains on track for a weekly gain, highlighting continued investor interest amid global uncertainty.

Oil Prices Stabilise After Sharp Falls

Oil prices edged higher, consolidating after steep losses in the previous session.

• Brent crude rose modestly
• West Texas Intermediate also ticked up

Concerns about an immediate US military strike on Iran have eased, reducing supply risk fears. However, oil prices remain volatile and are set to end the week broadly flat after earlier spikes driven by unrest in the region.

Market Outlook

Markets are being driven by a mix of strong corporate earnings, particularly in AI-related sectors, and shifting expectations around interest rates and geopolitics. With US bank results still to come and global risks lingering, investors are likely to remain selective as they assess the outlook for early 2026.

Sources: (Investing.com, Reuters.com)