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    Dow, S&P 500, Nasdaq rise as TSMC’s stellar earnings eclipse trade-war jitters

    7 Mins Read


    US stocks rose on Thursday as chip manufacturing giant TSMC’s (TSM) stellar earnings buoyed AI demand hopes, taking minds off fears of a prolonged US-China trade war stoked by President Trump.

    The tech-heavy Nasdaq Composite (^IXIC) moved up nearly 0.5%, while the S&P 500 (^GSPC) put on roughly 0.3%, as Nvidia (NVDA) and other AI-related stocks floated higher in TSMC’s slipstream. The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, added 0.2%.

    TSMC (Taiwan Semiconductor Manufacturing Company) hiked its outlook for 2025 revenue growth for the second time this year, giving hope that surging AI demand will keep on booming.

    The go-to contract chipmaker for Nvidia (NVDA) and Apple (AAPL) also reported a nearly 40% surge in quarterly profit in the last quarter, beating estimates and reaching a record. Nvidia, Broadcom (AVGO), Micron (MU), and other AI-related stocks rose.

    The upbeat mood also follows strong quarterly results from Wall Street banks and hints the Federal Reserve will cut interest-rates again this year.

    On the downside, US-China trade frictions promise to keep unsettling markets, on the heels of a choppy session on Wall Street.

    Trump confirmed on Wednesday that those tensions remain high, telling a reporter who asked whether the two countries are headed for a long-lasting trade war, “Well, you’re in one now.” At the same time, Treasury Secretary Scott Bessent suggested trade truce between the two could be extended.

    The conflicting messages follow a series of threats by Trump to further restrict trade with China in response to new sanctions and export controls from Beijing, as well as to impose additional 100% tariffs in November.

    Another headwind, the US government shutdown, entered its third week. The stoppage, which has deprived the Fed and Wall Street of key data on the economy, is increasingly expected to continue into November.

    LIVE 10 updates

    • Laura Bratton

      Stocks climb at the open

      US stocks rose on Thursday as the world’s leading AI chip manufacturer TSMC (TSM) posted earnings results ahead of expectations that lifted AI market optimism.

      The tech-heavy Nasdaq Composite (^IXIC) moved up nearly 0.5%, while the S&P 500 (^GSPC) put on roughly 0.3%. The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, added 0.25%.

    • Laura Bratton

      Nvidia, chip stocks climb as TSMC lifts forecast, chair C.C. Wei notes ‘conviction in the AI megatrend’

      Nvidia (NVDA), Broadcom (AVGO), and other chip stocks rose as TSMC’s (TSM) earnings and executive commentary bolstered confidence in AI-linked semiconductor demand.

      Shares of leading AI chipmaker Nvidia rose 1%, while rival Broadcom added 1.4%. Shares of Micron (MU), whose memory chips are used alongside Nvidia’s GPUs in AI servers, climbed 3.4%, while British chip designer Arm (ARM) gained nearly 1%. AMD (AMD) shares were flat.

      The moves come as TSMC’s third quarter earnings report surpassed expectations and the Taiwan-based contract chip manufacturer lifted its full-year 2025 revenue growth outlook to the mid-30% range from its earlier 30% forecast.

      TSMC also lifted the bottom of its capital expenditure forecast range to $40 billion from $38 billion — with 70% of that budget allocated to ramping up its advanced manufacturing processes related to AI chipmaking — as the company noted “higher growth opportunities in the following years.”

      TSMC chair C.C. Wei said: “Our conviction in the AI megatrend is strengthening and we believe the demand for semiconductor[s] will continue to be very fundamental.”

      CFO Jen-Chau Huang added that “next year looks to be a healthy year, and we are confident on the mega trend that we’ll continue to invest.”

      That conviction is a positive signal for the AI space, as CEOs and Wall Street analysts increasingly express concerns over a market bubble fueled by AI hype and a tangled web of circular investments among the leading industry players.

    • Hims & Hers stock dips after rallying on new menopause treatments

      Hims & Hers (HIMS) stock dipped on Thursday morning after mounting a huge 16% rally on Wednesday.

      The telehealth provider said it would now be providing a line of treatments for menopause and perimenopause, expanding its range of hormone replacement therapies, as it looks to scale in that market.

      The company stated that around 1.3 million women in the US experience menopause each year, but less than a third of OB/GYN residencies offer menopause training. The US hormone therapy market was last estimated at around $11 billion in 2024 and is forecast to grow to $19.22 billion by 2033, according to Grand View Research.

    • OpenAI has 2 kinds of dealmaking — and they’re lopsided

      Yahoo Finance’s Hamza Shaban reports:

      Read more here in the takeaway from today’s Morning Brief.

    • Jenny McCall

      Good morning. Here’s what’s happening today.

      Please note: Some economic data will not be available due to the government shutdown.

      Economic data: Initial jobless claims (week ending Oct. 11); Continuing claims (week ending Oct. 4); Retail sales advance (September); Producer price index final demand (September); Philadelphia Fed business outlook; Business inventories (August); NAHB housing market index (October)

      Earnings calendar: Taiwan Semiconductor Manufacturing Company (TSM), Charles Schwab (SCHW), BNY Mellon (BK), U.S. Bancorp (USB), Interactive Brokers (IBKR), Marsh & McLennan (MMC), Infosys (INFY), CSX (CSX)

      Here are some of the biggest stories you may have missed overnight and early this morning:

      Trump on US-China trade war: ‘You’re in one now’

      OpenAI has 2 kinds of dealmaking — and they’re lopsided

      Xi’s rare earth shock gives Trump a chance to woo back US allies

      TSMC hikes outlook in vote for sustained AI boom

      Salesforce jumps as $60B forecast eases revenue growth concerns

      Gold climbs to record on US-China tensions and Fed rate-cut bets

      Oil rises as Trump says India will stop buying from Russia

      Nestlé stock soars on sales rebound, plan for 16,000 job cuts

    • Jenny McCall

      Premarket trending tickers: Nvidia, HPE and J.B. Hunt Transport

      Here’s a look at some of the top stocks trending in premarket trading:

      Nvidia (NVDA) stock rose 1% in premarket trading on Thursday after an upbeat earnings release from fellow chipmaker TSMC (TSM) helped boost chip stocks.

      HPE (HPE) stock fell 8% before the bell after 2026 guidance came in below expectations amid slow growth for the company’s networking business.

      J.B. Hunt Transport Services, Inc. (JBHT) stock rose 13% in premarket trading on Thursday following the release of its third-quarter earnings. The transport and logistics company beat Wall Street estimates.

    • Jenny McCall

      Salesforce rises after forecasting revenue above $60B by 2030

      Salesforce (CRM) stock rose 6% before the bell on Thursday after forecasting that it expects revenue of more than $60 billion in 2030, beating Wall Street estimates.

      Reuters reports:

      Read more here.

    • TSMC hikes sales outlook as it posts record profit thanks to AI boom

      Taiwan Semiconductor Manufacturing Corp. (TSM, 2330.TW) on Thursday reported a nearly 40% surge in profit in the last quarter, fueled by soaring demand for chips used for AI.

      The contract chipmaker’s net income of 452.3 billion new Taiwan dollars ($14.8 billion) in the July-September quarter topped analyst forecasts.

      Shares in TSMC rose 1.56% in premarket trading on Wall Street and gained 1.4% in Taiwan.

      Bloomberg reports:

      Read more here.

    • Nestlé stock soars after sales rebound, plan to shed 16,000 jobs

      Nestlé (NESN.SW, NSRGY) shares climbed after the foodmaker posted a stronger-than-expected increase in quarterly sales and announced plans to slash 16,000 jobs, just weeks after replacing its chief executive officer.

      The stock surged as much as 8.2% in Swiss trading, the biggest gain since 2008. The foodmaker had risen 1.7% this year through Wednesday, lagging behind the Swiss Market Index.

      The job reductions, amounting to about 6% of the workforce, will occur over the next two years, the maker of Nespresso coffee capsules and KitKat candy bars said Thursday. Nestlé raised its target for cost savings to 3 billion Swiss francs ($3.7 billion) by the end of 2027, from 2.5 billion francs.

      “The world is changing, and Nestlé needs to change faster,” CEO Philipp Navratil said in a statement Thursday. “This will include making hard but necessary decisions to reduce headcount.”

      The announcement on jobs came alongside a 4.3% rise in third-quarter sales, driven by higher prices and improved real internal growth — a key measure of volumes closely watched by analysts and investors.

      Read more here.

    • Gold reaches new record as US-China trade tensions escalate

      Bloomberg reports:

      Read more here.



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