U.S. stock futures rebounded on Thursday after steep losses in the previous session, driven by growing optimism that tariff deals could be reached with major global trade partners. At the same time, the European Central Bank (ECB) is expected to cut interest rates, while Taiwan Semiconductor Manufacturing Company (TSMC) reported strong quarterly earnings.
U.S. Stock Futures Rise
U.S. stock futures showed signs of recovery on Thursday, following a sharp decline on Wednesday. At 04:20 ET (08:20 GMT), S&P 500 futures were up by 52 points (1%), Nasdaq 100 futures increased by 210 points (1.2%), and Dow futures rose by 340 points (0.9%).
On Wednesday, tech stocks, particularly Nvidia, suffered significant losses after the chipmaker announced a $5.5 billion charge tied to new U.S. export controls. As a result, the Nasdaq Composite fell 19% from its recent high, edging closer to bear market territory. Despite this, optimism grew ahead of the Good Friday holiday, spurred by expectations of negotiated tariff agreements between the U.S. and its trading partners, which could help avoid a full-scale global trade war.
Corporate earnings from companies like American Express, Blackstone, and Truist Financial were also in focus, as were key economic reports, including the Federal Reserve Bank of Philadelphia’s April Manufacturing Business Outlook Survey and weekly jobless claims.
Positive Signs for Tariff Negotiations
Market sentiment had been shaken after President Trump’s announcement of broad “reciprocal” tariffs earlier this month. However, recent developments suggest progress in resolving trade tensions. Over the weekend, Trump granted exemptions for smartphone and PC imports, and he later declared “big progress” in negotiations with Japan, the first major trading partner to negotiate directly with the U.S.
European Commission President Ursula von der Leyen expressed support for continuing tariff talks, and reports indicated that China is open to discussions, although it demands more respect from the U.S. government.
ECB Set to Cut Rates Again
The ECB is widely expected to cut interest rates for the seventh time this year in an effort to bolster an economy already struggling before the anticipated effects of U.S. tariffs. The central bank has warned that growth in the eurozone could be reduced by 0.5% this year if tariffs are imposed.
Recent inflation data showed a 2.2% year-on-year increase in March, slightly above the ECB’s target, while concerns about growth and disinflation persisted due to the impact of tariffs and other global factors. Analysts suggest that the ECB’s rate cut will be a precautionary measure aimed at supporting market confidence.
TSMC Reports Strong Growth
Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chipmaker, reported a 60% jump in first-quarter net profit and projected higher revenue in the coming quarter. The company’s AI and 5G-driven high-performance computing division saw a 7% increase in sales from the previous quarter, contributing to 59% of its total revenue.
TSMC expects second-quarter revenue to be between $28.4 billion and $29.2 billion, marking a 13% increase from the previous quarter and a 38% year-on-year rise. While the company acknowledged potential risks from U.S. tariff policies, it noted that demand for AI-related products remains strong.
Oil Prices Rise Amid Sanctions on Iran
Oil prices were on track for weekly gains, supported by concerns over supply disruptions after the U.S. imposed new sanctions on Iran’s oil exports. At 04:20 ET, Brent crude rose by 0.8% to $66.38 per barrel, while U.S. West Texas Intermediate crude climbed 1% to $63.10 per barrel. Both benchmarks closed at their highest levels in two weeks on Wednesday.
In a further escalation, the Trump administration expanded sanctions against Iran’s oil sector, targeting Chinese entities, including a refinery in Shandong province.
Bitcoin and Gold Respond to Trade Tensions
Elsewhere, Bitcoin gained ground as market optimism grew around the possibility of tariff negotiations. Meanwhile, spot gold hit a new record high, surpassing $3,300 per ounce, as investors sought safe-haven assets amid ongoing global trade uncertainties.
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