The Market News Today: TSMC’s Strong Q1 Bolsters US Tech Sector

TSMC Surpasses Q1 Expectations, Fueled by Strong AI Chip Demand

Taiwan Semiconductor Manufacturing Company (TSMC) reported strong first-quarter results, surpassing revenue and profit forecasts. Net revenue reached NT$592.64 billion ($18.87 billion), a 16.5% increase from last year, while net income rose to NT$225.49 billion, marking an 8.9% growth. This performance was driven by robust demand for advanced AI chips, which are crucial for applications like large language models. TSMC’s outlook remains positive, expecting continued strong demand for its leading-edge 3nm and 5nm technologies.

Netflix Set to Report Strong Q1 Earnings, Driven by New Strategies

Netflix is poised to unveil its first-quarter results after the close on Thursday, anticipated to be robust following a stellar fourth quarter. Analysts project earnings of $4.20 per share on $8.6 billion in revenue, reflecting year-over-year increases of 45.8% and 5.8%, respectively. Factors contributing to this performance include a new, lower-priced ad-supported plan and effective measures against password sharing. These strategies have provided significant momentum, though the long-term benefits may be limited.

Stock Futures Up as Nasdaq Faces Longest Weekly Slide Since 2022

Stock futures rebounded Thursday despite ongoing losses in the tech sector, with the S&P 500 and Nasdaq Composite each marking four consecutive days of declines. S&P 500 futures increased by 0.27%, Nasdaq 100 by 0.38%, and Dow futures by 0.15%. Notably, Equifax’s stock dropped over 9% following disappointing guidance, and Las Vegas Sands fell nearly 3% despite a slight revenue beat. The Nasdaq is on track for its longest weekly losing streak since December 2022, underscoring a challenging second quarter.

Gold Climbs Amid Geopolitical Tensions, Crude Oil Prices Fall

Gold prices rose to $2,374.97 per ounce on Thursday, driven by its safe-haven appeal amidst widening Middle East conflicts, overshadowing the impact of persistent high U.S. interest rates. Meanwhile, crude oil prices dipped, with Brent crude at around $87 per barrel and WTI below $83, despite geopolitical tensions and renewed U.S. sanctions on Venezuela. The contrasting market movements highlight the complex interplay between geopolitical uncertainty and economic policy effects on commodity markets.

Bitcoin Falls Below $61.2K; Major Cryptos Dip Ahead of Halving

Bitcoin dipped 4.2% to $61,151 amid growing geopolitical tensions and ahead of the anticipated halving event, causing widespread declines across the cryptocurrency market. Ethereum and other major cryptocurrencies like Dogecoin and Solana also saw significant drops, with the global crypto market cap falling by 3.5%. The upcoming Bitcoin halving, coupled with negative ETF data, has heightened market volatility, leading to a bearish sentiment and a cautious approach from investors.