U.S. stock index futures were indicating a mildly higher open on Friday, setting the stage for equities to build on the rebound recorded in the previous session.
Markets could continue to draw support from Thursday’s upward momentum, which was driven by a favorable response to earnings from companies such as Taiwan Semiconductor (NYSE:TSM), Goldman Sachs (NYSE:GS) and Morgan (NYSE:MS).
That said, upside momentum may be limited as investors remain cautious amid rising geopolitical tensions worldwide.
President Donald Trump’s threats to take control of Greenland remain in focus, particularly after European troops arrived in the territory as a show of support.
Traders are also monitoring developments in Venezuela, ongoing political unrest in Iran, and the continuing Russia-Ukraine conflict.
After posting solid gains for much of Thursday’s session, stocks surrendered part of their advance late in the day but still managed to finish mostly higher.
All three major benchmarks closed in positive territory, recovering some of the losses seen over the prior two sessions.
The Dow gained 292.81 points, or 0.6%, to 49,442.44, the Nasdaq rose 58.27 points, or 0.3%, to 23,530.02, and the S&P 500 added 17.87 points, or 0.3%, to 6,944.47.
Early strength on Wall Street was partly driven by enthusiasm around earnings from Taiwan Semiconductor (TSM), with the chipmaker’s shares surging 4.4%.
Taiwan Semiconductor rallied after posting a sharp jump in fourth-quarter profits and unveiling capital spending plans that exceeded expectations, reinforcing confidence in the artificial intelligence theme.
“After last week’s revenue update it was an open secret that TSMC would be reporting a record quarter but the details are still striking,” said Russ Mould, investment director at AJ Bell.
“Not least the levels of capital expenditure TSMC is committing to, suggesting it is fully confident the AI boom has legs,” he added. “This is underlined by the company’s guidance for 30% growth in 2026.”
Sentiment also appeared to benefit from fresh U.S. labor market data, after a Labor Department report showed first-time claims for unemployment benefits unexpectedly declined in the week ended January 10.
According to the Labor Department, initial jobless claims fell to 198,000, down 9,000 from the prior week’s revised figure of 207,000.
Economists had forecast an increase to 215,000 from the previously reported 208,000.
Airline stocks stood out among the day’s gainers, with the NYSE Arca Airline Index jumping 2.6%.
Strength was also evident in the semiconductor space more broadly, as the Philadelphia Semiconductor Index climbed 1.8%.
Financial, networking and utilities stocks also posted solid gains, while pharmaceutical, oil and biotechnology shares ended the session lower.
Taiwan Semiconductor stock price