US stocks demonstrated resilience on Thursday, indicating a potential rebound from recent losses as investors eagerly turned their attention to upcoming quarterly earnings reports. This optimism comes despite dwindling hopes for an early 2024 interest rate cut. In a dynamic trading session, the S&P 500 (^GSPC) edged up by approximately 0.4%, with the tech-heavy Nasdaq Composite (^IXIC) leading gains with a notable 1% increase. In contrast, the Dow Jones Industrial Average (^DJI) experienced a slight dip of about 0.3%.
The tech sector spearheaded the market ascent following a bullish artificial intelligence (AI)-driven revenue forecast from Taiwan Semiconductor Manufacturing Company (TSMC), a pivotal supplier to tech giants Apple (AAPL) and Nvidia (NVDA). Although TSMC reported a decline in profits, it surpassed Wall Street estimates. This positive development prompted a nearly 7% surge in shares of Advanced Micro Devices (AMD) and other chipmakers.
Despite this upward momentum, stocks have encountered challenges gaining traction this year. Central bankers’ remarks and mixed economic data have tested investor confidence in the Federal Reserve’s anticipated pivot. Traders’ expectations for a rate cut in March, as indicated by the CME FedWatch Tool, have seen a significant decline of 10 percentage points over the past week.
Investors are closely monitoring fresh data releases to inform their market expectations. Among the key reports, Thursday’s unveiling of weekly jobless claims figures takes center stage. Additionally, attention is directed towards housing starts and building permits data for December.
Atlanta Fed President Raphael Bostic is slated to make two appearances today, drawing keen interest from market participants. His remarks will be closely scrutinized for any deviation from his colleagues’ recent resistance to the idea of rate cuts.
In the face of challenges and uncertainties, the unwavering resilience of US stocks emerges as a beacon, hinting at a market that remains steadfast and determined in its pursuit of positive momentum. As the market continues to navigate uncertainties, the focus remains on corporate earnings reports and economic indicators, shaping the trajectory of U.S. stocks in the coming weeks.
Source: Yahoo Finance
