Stocks Get Tech Boost as TSMC Rekindles AI Wagers: Markets Wrap
(Bloomberg) — Wall Street traders brushed aside worries about a tech bubble to send stocks higher after a strong outlook from Taiwan Semiconductor Manufacturing Co. bolstered confidence in the artificial-intelligence boom.
That’s also brought a relative sense of calm for a market that has been whipsawed by concerns about a resurgence in trade frictions between the US and China. A solid batch of corporate results in the first few days of the US earnings season helped buoy sentiment toward equities, which have also gained on prospects for more Federal Reserve rate cuts.
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Fed Governor Christopher Waller said officials can keep lowering interest rates in quarter-percentage-point increments to support a faltering labor market, while Stephen Miran continued to advocate a larger reduction. Chair Jerome Powell signaled earlier this week that officials are on track to lower borrowing costs by a quarter point in October.
While the weeks-long US government shutdown has delayed the release of key data on employment and other metrics, Treasuries edged only mildly lower. The focal points of US session include several Fed speakers and the potential for more corporate bond offerings by big banks.
Corporate Highlights:
Hewlett Packard Enterprise Co. gave an outlook for profit and cash flow for its upcoming fiscal year that fell short of analysts’ estimates, reflecting a margin crunch in the AI era. Salesforce Inc. projected revenue growth will accelerate to double digits in the coming years, potentially easing investor concerns about the pace of business at the software company. United Airlines Holdings Inc. expects brand-loyal flyers and demand for its premium seats to drive profit through the end of the year, maintaining momentum after reporting better-than-expected earnings for the third quarter. JB Hunt Transport Services Inc. reported a quarterly profit that topped expectations. Charles Schwab Corp. reported third-quarter earnings that beat estimates as the firm benefited from a surge in retail investing activity. U.S. Bancorp’s third-quarter revenue topped analysts’ estimates, a positive sign for a company whose shares have been underperforming their main rivals for years. Travelers Cos. reported net premiums written that came in below the average analyst estimates. Taiwan Semiconductor Manufacturing Co. hiked its projection for 2025 revenue growth for the second time this year, reinforcing hopes in the longevity of a global boom in AI spending. Infosys Ltd. raised the lower end its forecast for yearly revenue, banking on a revival in spending on technologies such as artificial intelligence. Nestlé SA’s new chief executive officer, Philipp Navratil, may be following a strategy set in place by his ousted predecessor, but he’s quickly putting his own hard-driving spin on it. Merck KGaA disappointed investors as it outlined new mid-term targets that bank on its life science division driving further growth. Pernod Ricard SA’s sales fell more than expected on a sharp slump in demand in China and the clearing out of excess stock in the US. Will we see more convergence between gaming and finance in the future? Let us know in the latest Markets Pulse survey.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.3% as of 9:30 a.m. New York time The Nasdaq 100 rose 0.7% The Dow Jones Industrial Average rose 0.2% The Stoxx Europe 600 rose 0.3% The MSCI World Index rose 0.2% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro was little changed at $1.1655 The British pound rose 0.2% to $1.3433 The Japanese yen was little changed at 151.18 per dollar Cryptocurrencies
Bitcoin was little changed at $111,167.22 Ether rose 2.1% to $4,046.53 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.05% Germany’s 10-year yield advanced one basis point to 2.58% Britain’s 10-year yield was little changed at 4.54% The yield on 2-year Treasuries advanced one basis point to 3.51% The yield on 30-year Treasuries advanced two basis points to 4.64% Commodities
West Texas Intermediate crude rose 0.6% to $58.61 a barrel Spot gold rose 1% to $4,251.35 an ounce ©2025 Bloomberg L.P.
