At 5:45am, Dow E-minis were down 24 points, or 0.05%, S&P 500 E-minis were up 5.75 points, or 0.1%, and Nasdaq 100 E-minis were up 41.25 points, or 0.18%.
US chipmakers rose in premarket trading after TSMC, the world’s main producer of advanced artificial intelligence (AI) chips, posted a record quarterly profit, saying demand for AI was getting stronger.
US-listed shares of TSMC gained 4% and Advanced Micro Devices rose 1.2%. Marvell inched up 0.7%, while Nvidia and Super Mirco Computers gained 0.7% and 1.3%, respectively.
Netflix edged 0.5% higher ahead of its quarterly results after the market close.
“The market is underestimating the potential for a big US earnings beat in the second quarter.
“Recent data on economic activity shows few signs of troubling weakness,” HSBC analysts said.
Wall Street ended the previous session with modest gains, with the Nasdaq soaring to yet another record high.
Markets briefly tumbled in the previous session – dropping as much as 1% – after reports surfaced that President Donald Trump was considering firing Federal Reserve chair Jerome Powell.
Although Trump swiftly denied the reports, his ongoing criticism of the central bank and hints at possible action kept investors on edge about the Fed’s independence.
Fed officials have resisted cutting rates until there is clarity on whether Trump’s tariffs on US trading partners reignite inflation.
The media reports yesterday sent odds of a September rate cut soaring to 66%, up from 54% earlier in the day.
Currently, traders see a 55% chance of cutting in September, while a July move is almost completely off the table, according to CME’s FedWatch tool.
Meanwhile, attention also remained on looming tariffs, with an Aug 1 deadline threatening higher levies for many US trading partners.
Trump told Real America’s Voice yesterday that the US is closing in on a deal with India and may soon reach an agreement with Europe as well.
Investors will also be eyeing June retail sales data, set for release at 8.30am, for fresh insight into consumer spending.
At least four Fed officials, including board governors Adriana Kugler and Lisa Cook, are slated to speak.