Dow Futures rise, while Dow futures experience a slight decline. U.S. President Donald Trump stated that he has no intentions of removing Federal Reserve Chair Jerome Powell. Chipmaking giant achieves a record-high fourth-quarter profit driven by surging demand for artificial intelligence, as additional bank earnings are set to be released before the opening bell. Meanwhile, oil prices decline following Trump’s statement that killings in Iran are subsiding.

Dow Futures fluctuated around the flatline on Thursday, as investors assessed increased geopolitical tensions and initial returns from the quarterly corporate earnings season. At 02:47, the Dow futures contract experienced a decline of 29 points, representing a decrease of 0.1%. Meanwhile, S&P 500 futures saw an increase of 4 points, or 0.1%, while futures rose by 48 points, equating to a 0.2% gain. The main averages declined in the previous session, impacted by widespread weakness in technology stocks and selling pressure following earnings reports from major banks. Treasuries recorded modest gains. Yields, which typically move inversely to prices, fell across various durations, with analysts pointing out a producer price index reading that was cooler than expected and a drop in oil prices.

President Trump has stated he “doesn’t have any plan” to fire Fed Chair Jerome Powell, despite the Justice Department initiating a criminal investigation into the head of the U.S. central bank. In an interview, Trump stated that it was “too early” to determine his course of action on the issue. Trump remarked that the White House is in “a little bit of a holding pattern” with Powell, stating “we’re going to determine what to do.” Powell’s recent announcement that he had received a subpoena from the DOJ has raised new concerns regarding the Federal Reserve’s capacity to modify monetary policy without political interference. Powell denied any wrongdoing, asserting that the investigation was part of a broader campaign aimed at influencing interest rates, which Trump has consistently argued should be reduced aggressively and rapidly. In response to a question regarding concerns that undermining the Fed’s independence might negatively impact the U.S. dollar and increase inflation, Trump stated, “I don’t care.” The president also suggested a preference for appointing one of “the two Kevins” – former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett – to succeed Powell when his term at the helm of the Fed concludes in May. Trump seemingly dismissed Treasury Secretary Scott Bessent as a candidate, stating, “he wants to stay where he is.”

Taiwan Semiconductor Manufacturing Co. reported a fourth quarter net profit that exceeded expectations, driven by robust demand for its advanced processors, particularly from the artificial intelligence sector. The firm has established a significantly elevated capital expenditure forecast for 2026, declaring its intention to aggressively increase production capacity in response to the surging demand for AI. TSMC anticipates that its capital expenditure for 2026 will fall between $52 billion and $56 billion, an increase from $40.90 billion in 2025, according to CFO Wendell Huang during a post-earnings call. Huang cautioned that TSMC’s mid-to-long-term margins are poised to decline as the chipmaker persists in expanding its production capacity, particularly abroad. CEO C.C. Wei also highlighted “significantly higher” capital expenditures and costs in the coming years. TSMC achieved a remarkable net profit of T$505.74 billion ($16 billion) in the quarter ending December 31, surpassing Bloomberg’s estimates of T$467.0 billion and exceeding the T$374.68 billion recorded in the same period last year.

In other news on the earnings calendar, major U.S. banks Morgan Stanley and Goldman Sachs are set to release their results. This will conclude a week of reports from the largest lenders, featuring prominent names such as JPMorgan Chase and Bank of America. As the latest round of quarterly earnings begins, the figures are regarded as indicators of the condition of the U.S. economy and Corporate America at large in the early weeks of 2026. Bank executives have characterized the economy as resilient in the face of widespread uncertainty arising from extensive U.S. tariffs, persistent inflation, and indications of a weakening labor market. JPMorgan, BofA, Citigroup, and Wells Fargo have collectively reported total full-year profits of $123.2 billion, reflecting an increase of nearly 5% from 2024, based on calculations.

Oil prices fell, ending a five-day winning streak as Trump suggested a more measured approach to Iran, alleviating concerns about potential short-term supply disruptions. Futures declined by 3.5%, settling at $64.20 a barrel, while U.S. West Texas Intermediate crude futures decreased by 3.4%, reaching $59.92 a barrel. Prices have surged more than 10% over the last five sessions, reaching multi-month highs amid concerns that unrest in Iran could provoke U.S. military action and disrupt production or shipping. On Wednesday, Trump stated that he had received information indicating that the killings during Iran’s crackdown on nationwide protests were diminishing, and he expressed his belief that there was presently no intention for large-scale executions.