(Bloomberg) — U.S. technology stocks pared this week's slide on upbeat earnings from the world's largest chipmaker and encouraging prospects for other big players in the sector.
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Taiwanese semiconductor manufacturer Nvidia Corporation, Advanced Micro Devices Inc. and Super Microcomputer Inc. Nasdaq 100 futures rose 0.4% after estimates and stronger forecasts. The Nasdaq index endured its worst day of 2022 on Wednesday amid concerns over tougher US restrictions on companies supplying advanced semiconductor technology to China. Europe's Stoxx 600 index added 0.3%.
Analysts say a relatively strong earnings season and expectations of interest rate cuts by the Federal Reserve and other central banks also support sentiment. Later in the day, streaming service giant Netflix Inc. It will be the first major US tech company to announce results – which are expected to show continued growth in global subscriber numbers.
Michael Brown, senior strategist at Pepperstone Group Ltd., said: « I'm not surprised people are buying the fall. September. »
However, worries about the technology have not been completely dispelled, and Amsterdam-listed chip company ASML Holding NV — among the companies most likely to be hit by any tougher U.S. measures — extended its way up 11% on Wednesday. That, along with the prospect of trade tariffs under a possible Donald Trump presidency, continues to weigh on Europe's Stoxx 600 index.
On the earnings front, Volvo AB rose after posting better-than-expected second-quarter profit, although an update from telecom giant Nokia Oyj disappointed, pushing shares 10% lower.
In New York, airline stocks lost ground in premarket trading after an earnings outlook for United Airlines Holdings Inc. fell short of estimates. Meet Inc
Elsewhere, the dollar index traded at its lowest level in two months, while the yen was steady after a recent surge due to a bout of buying by Japanese officials. The euro weakened slightly ahead of the European Central Bank meeting, where the next rate cut is expected to come in September.
Later in the day, a string of Fed rate setters are scheduled to speak, including San Francisco Fed President Mary Daly and Governor Michael Bowman. Initial jobless claims figures due later Thursday will provide investors with the latest snapshot of the economy.
Highlights of this week:
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ECB rate decision, Thursday
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US Initial Jobless Claims, Philadelphia Fed Manufacturing, Conference Board LEI, Thursday
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Fedin Mary Daly, Lori Logan and Michael Bowman speak Thursday
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The Fed's John Williams and Raphael Bostick speak Friday
Some key movements in the markets:
Shares
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S&P 500 futures were little changed as of 6:32 a.m. New York time
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Nasdaq 100 futures rose 0.3%
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Futures for the Dow Jones industrial average fell 0.2%
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The Stoxx Europe 600 rose 0.3%
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The MSCI World Index was little changed
Coins
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0932
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The British pound fell 0.1% to $1.2991
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The Japanese yen fell 0.2% to 156.44 per dollar
Cryptocurrencies
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Bitcoin was little changed at $64,559.46
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Ether rose 0.7% to $3,440.33
Bonds
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The yield on 10-year Treasuries rose three basis points to 4.18%.
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Germany's 10-year yield rose two basis points to 2.44%
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Britain's 10-year yield was little changed at 4.08%
materials
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West Texas Intermediate crude was little changed
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Spot gold rose 0.2% to $2,463.17 an ounce
This story was produced with the help of Bloomberg Automation.
–With assistance from Richard Henderson and Chiranjeevi Chakraborty.
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