DOW Futures show a slight increase following a mixed performance in the previous session’s equities market. Artificial intelligence euphoria drives chipmaker TSMC to record third-quarter profits, while Oracle is anticipated to present a new financial outlook as the cloud software group makes significant investments in AI. Meanwhile, gold reaches yet another historic high.

DOW Futures indicated an upward trajectory on Thursday, as investors assessed the stronger-than-anticipated earnings from semiconductor leader TSMC alongside a resurgence in trade tensions between the U.S. and China. As of 02:51, the Dow futures contract exhibited an increase of 58 points, translating to a 0.1% rise, while S&P 500 futures advanced by 12 points, or 0.2%. Concurrently, Nasdaq 100 futures experienced an uptick of 88 points, equivalent to a 0.4% gain. The benchmark S&P 500 and tech-heavy Nasdaq Composite experienced gains on Wednesday, whereas the blue-chip Dow Jones Industrial Average concluded the day with a modest decline. An initial surge in equities diminished somewhat during the session, as markets analyzed broadly positive earnings from European chip leader ASML and prominent Wall Street banks Bank of America and Morgan Stanley. The persistent trade tensions between the United States and China continued to attract attention. Beijing is prepared to adopt a more assertive stance in discussions with Washington, as it perceives that increased instability could negatively impact stock markets and compel U.S. President Donald Trump to engage in negotiations. U.S. Treasury Secretary Scott Bessent stated that fluctuations in equity markets would not change the Trump administration’s position in the ongoing stand-off, while emphasizing that the White House is keen to avoid any further escalation of the trade conflict. He stated that Trump remains prepared to engage with Chinese counterpart Xi Jinping in South Korea later this month.

Taiwan Semiconductor Manufacturing Corp, or TSMC, reported a record profit for the third quarter on Thursday, driven by a significant increase in demand for AI infrastructure. TSMC, with clients such as AI-darling Nvidia and iPhone-maker Apple, reported a net profit of T$452.30 billion for the three months ending September 30. The figure exceeded the estimate of T$417.7 billion. Markets were positioned for a robust outcome, following TSMC’s announcement of a 30% increase in its quarterly revenue last week. Revenue increased to T$989.92 billion, with a gross margin of 59.5%. The largest producer of advanced AI chips has forecasted that excitement surrounding this emerging technology will accelerate further, anticipating a revenue increase of up to 24% in the current quarter. The forecast for capital spending remains steadfast at up to $42 billion this year, notwithstanding potential challenges posed by extensive U.S. tariffs and fluctuations in currency values.

In another development, Oracle is scheduled to convene with financial analysts at the cloud software group on the concluding day of its AI-centric conference in Las Vegas this Thursday. Analysts anticipate that the company will provide updated financial guidance at the gathering, but they noted that since management has already offered new forecasts for its cloud services unit for the next four years, “the real focus will be on margins and cash flow.” Oracle’s newly appointed dual chief executives endorsed the company’s strategy to allocate substantial investments in data centers earlier this week, stating that this initiative will enhance the computing capacity essential for rendering AI models more beneficial for enterprises. On Tuesday, Oracle announced its intention to provide cloud services powered by Advanced Micro Devices’ forthcoming MI450 AI chips, aiming to enhance its computing capabilities. Last month, Oracle experienced a significant increase in its shares following the announcement of a $317 billion rise in future contract revenue for the quarter ending August 31, largely attributed to a partnership with OpenAI, the creator of ChatGPT.

Market participants will be monitoring an indicator of manufacturing performance in the U.S. Mid-Atlantic area on Thursday, as an extended government shutdown in the U.S. results in a postponement of new economic statistics. The Federal Reserve Bank of Philadelphia’s monthly manufacturing index is projected to be 8.6 in October, a decline from the previous month’s reading of 23.2. A favorable reading indicates growth within the sector. Some Fed policymakers have been exploring alternative economic indicators to assist them in calibrating policy amid the scarcity of official figures. The central bank is poised to announce its forthcoming decision regarding interest rates later this month. On Wednesday, the Fed’s “Beige Book” report, which aggregates qualitative data such as surveys and interviews, indicated that U.S. economic activity remained relatively stable and employment showed little variation in recent weeks. Nonetheless, indications of rising layoffs and a reduction in expenditure by lower- and middle-income households were starting to emerge.

Gold prices have reached new record highs, achieving a fourth consecutive session of all-time peaks. This surge is attributed to increasing expectations for Federal Reserve rate cuts and ongoing U.S.-China trade tensions, which have bolstered demand for the safe-haven metal. Spot gold increased by 0.5% to $4,230.48 per ounce by 03:48, having peaked at $4,241.99 earlier in the session. U.S. gold futures experienced an increase of 1.0%, reaching a value of $4,244.71. Bullion has surged by over 6% in the last week. Market participants are currently anticipating a highly probable 25 basis-point reduction in interest rates by the Federal Reserve in October, with expectations for an additional cut in December, following Chair Jerome Powell’s more dovish rhetoric in his recent statements. Gold, which does not yield any income, typically exhibits stronger performance in environments characterized by low interest rates.