Markets Navigate Powell Drama While Eyeing Key Economic Data
U.S. stock futures showed mixed movement early Thursday as investors processed ongoing tensions between President Trump and Federal Reserve Chair Jerome Powell while awaiting crucial economic data and major earnings reports. The S&P 500 futures edged up 0.07%, while Dow Jones futures slipped 0.08% following Wednesday’s volatile session. Nasdaq futures gained 0.14%, building on yesterday’s tech-driven record highs.
Markets remain near historic peaks despite political uncertainty after Trump walked back suggestions he was planning to fire Powell. The president’s criticism of the Fed’s interest rate policy continues to create market jitters, with traders almost unanimously expecting rates to remain unchanged at the next meeting.
“Markets seem to have priced in Powell’s job insecurity. But the real catalyst now is earnings—especially from the tech giants,” noted Michael Green, strategist at Simplify Asset Management.
TSMC Delivers Blowout Earnings on AI Chip Demand
Taiwan Semiconductor Manufacturing Company (TSM) reported spectacular second-quarter results Thursday morning, with profits soaring 60.7% year-over-year to a record $13.53 billion, handily beating analyst expectations. The chipmaker’s shares jumped over 5% in premarket trading.
TSMC CEO C.C. Wei raised the company’s full-year 2025 revenue growth forecast to approximately 30% in U.S. dollar terms, citing robust demand for AI chips and advanced technologies. The company’s high-performance computing division, which includes AI applications, contributed 60% of quarterly revenue, up from 52% a year ago.
“The primary driver of growth for TSMC has been the robust demand for AI-related chips, particularly for the leading edge nodes,” said Brady Wang, associate director at Counterpoint Research. The strong results boosted other semiconductor stocks, with Nvidia (NVDA) gaining in premarket trading.
Investors Await Netflix Earnings and Retail Sales Data
All eyes are on Netflix (NFLX) as the streaming giant prepares to release its second-quarter earnings after the closing bell. Analysts expect another strong quarter, with the company benefiting from popular content including Squid Game season three and Black Mirror season seven. Netflix shares have been on a tear this year but dipped slightly in premarket trading.
Other major companies reporting earnings today include PepsiCo (PEP), GE Aerospace (GE), Novartis (NVS), and Abbott Laboratories (ABT).
June retail sales data, scheduled for release this morning, will provide another crucial snapshot of consumer health. Economists forecast a modest 0.1% increase, rebounding from May’s decline but suggesting consumers remain cautious about spending amid economic uncertainty and potential tariff-driven price increases.
United Airlines Revises Outlook, Oil Prices Climb
United Airlines (UAL) shares fell 2.7% in premarket trading after the carrier reset its full-year profit outlook. Despite beating second-quarter profit estimates, United now expects adjusted profit of $9 to $11 per share for 2025, below its earlier projection of $11.50 to $13.50.
CEO Scott Kirby noted, “The world is less uncertain today than it was during the first six months of 2025, and that gives us confidence about a strong finish to the year.”
Oil prices climbed following a larger-than-expected draw in U.S. crude inventories. Brent crude rose 0.39%, while West Texas Intermediate added 0.47% overnight.
Market Movers and Sector Performance
Technology continues to lead market performance this week, with eight of eleven S&P 500 sectors closing higher on Wednesday. The health care sector posted the strongest gains at 1.22%, followed by technology at 0.9%, while energy lagged with a 0.84% decline.
Notable premarket movers include:
– Rigetti Computing (RGTI): Up 30.19% on positive AI development news
– Joby Aviation (JOBY): Gained 17.06% after announcing expanded flight testing
– Merit Medical Systems (MMSI): Fell 10.31% following analyst downgrades
– ASML Holding (ASML): Dropped 8.33% after reporting supply chain challenges
Investors will also be monitoring weekly jobless claims and export/import price data for additional economic insights as markets continue to navigate the complex landscape of earnings season, economic indicators, and political uncertainty.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.