US stocks traded higher on Thursday on expectations of a recovery from recent losses, as investors looked to new quarterly profits for inspiration amid fading hopes for a rate cut in early 2024.
The S&P 500 (^GSPC) rose about 0.4%, while the tech-heavy Nasdaq Compossite (^IXIC) led the way, rising 1%. The Dow Jones Industrial Average (^DJI) fell about 0.3%.
Techs led stocks higher after bullish AI-powered revenue outlooks from TSMC (TSM), a key supplier to Apple (AAPL) and Nvidia (NVDA). The Taiwanese contract chipmaker’s profits fell but beat Wall Street expectations. Shares of AMD (AMD) and other chipmakers rose as TSMC rose nearly 7%.
Stocks are still struggling to take off this year as comments from central bankers and mixed economic data test investor confidence in a Federal Reserve pivot. The chances of a rate cut in March, as seen by traders, have fallen by 10 percentage points from a week ago. according to the CME FedWatch Tool.
Read more: What the Fed’s pause in rate hikes means for bank accounts, CDs, loans and credit cards
Investors are looking for new data to deliver on their expectations, so Thursday’s release of weekly jobless claims will be the focus. The start of housing and building permits for December are also on the agenda.
Eyes will also be on Atlanta Fed President Raphael Bostic, who will make two appearances today and will be closely watched for any deviation from his peers’ reluctance to cut rates.
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