US equity futures were mixed on Thursday, with contracts tied to the S&P 500 and Nasdaq edging higher while Dow futures dipped slightly. Sentiment was shaped by comments from US President Donald Trump on Federal Reserve leadership, blockbuster earnings from chipmaker TSMC (NYSE:TSM), and anticipation of further bank results later in the session. Oil prices also moved sharply lower after Trump signalled easing tensions in Iran.
Futures trade mixed
US stock futures hovered around the flatline as investors weighed geopolitical developments and early signals from the quarterly earnings season.
At 02:47 ET, Dow futures were down 29 points, or 0.1%, while S&P 500 futures rose 4 points, or 0.1%. Nasdaq 100 futures outperformed slightly, gaining 48 points, or 0.2%.
Wall Street’s main indices ended the previous session lower, pressured by broad weakness in technology stocks and post-earnings selling across large financial names.
US Treasuries advanced modestly, pushing yields lower across several maturities. Analysts pointed to a softer-than-expected producer price index reading and falling oil prices as supportive factors for bonds.
Trump says he has no plans to fire Powell — Reuters
President Donald Trump said he “doesn’t have any plan” to remove Federal Reserve Chair Jerome Powell, despite the Justice Department having opened a criminal investigation into the head of the US central bank.
Speaking to Reuters, Trump added that it was still “too early” to determine how he would ultimately respond, noting that the White House is currently in “a little bit of a holding pattern” with Powell and that “we’re going to determine what to do.”
Concerns have grown following Powell’s disclosure that he had received a DOJ subpoena, fuelling debate over the Federal Reserve’s independence. Powell has denied any wrongdoing, saying the investigation is part of an effort to influence interest rate policy — an area where Trump has repeatedly argued for aggressive and rapid cuts.
Asked about fears that undermining the Fed’s independence could weaken the US dollar and stoke inflation, Trump said “I don’t care.”
Trump also suggested he favours appointing one of “the two Kevins” — former Fed governor Kevin Warsh or National Economic Council Director Kevin Hassett — when Powell’s term ends in May. He appeared to rule out Treasury Secretary Scott Bessent, saying “he wants to stay where he is.”
TSMC delivers record, AI-driven Q4 profit
Taiwan Semiconductor Manufacturing Co. reported stronger-than-expected fourth-quarter results, with profits hitting a record high as demand for advanced chips used in artificial intelligence applications continued to surge.
The world’s largest contract chipmaker also raised its capital expenditure outlook sharply, signalling plans to aggressively expand production capacity to meet sustained AI-related demand.
TSMC now expects 2026 capital spending of between $52 billion and $56 billion, up from $40.90 billion in 2025, CFO Wendell Huang said during the post-earnings call. He cautioned that margins over the medium to long term are likely to come under pressure as the company continues to invest heavily, particularly in overseas facilities. CEO C.C. Wei also flagged “significantly higher” capital expenditure and costs in the years ahead.
Net profit for the three months to December 31 reached a record T$505.74 billion ($16 billion), beating Bloomberg consensus estimates of T$467.0 billion and well above the T$374.68 billion reported a year earlier.
Morgan Stanley and Goldman Sachs results due
Attention now turns to further US bank earnings, with results due from Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) before the opening bell.
These reports will conclude a busy week for major Wall Street lenders, following updates from JPMorgan Chase, Bank of America, Citigroup and Wells Fargo. Bank earnings are closely watched as indicators of broader economic and corporate conditions in the early stages of 2026.
So far, executives have described the US economy as resilient despite uncertainty linked to tariffs, persistent inflation and signs of labour market cooling. Collectively, JPMorgan, Bank of America, Citigroup and Wells Fargo posted combined full-year profits of $123.2 billion, up nearly 5% from 2024, according to the Wall Street Journal.
Oil prices tumble as Iran fears ease
Oil prices fell sharply, ending a five-day rally after Trump adopted a more measured tone on Iran, reducing concerns about near-term supply disruptions.
Brent crude futures dropped 3.5% to $64.20 a barrel, while US West Texas Intermediate fell 3.4% to $59.92 a barrel. The pullback followed a surge of more than 10% over the previous five sessions, which had lifted prices to multi-month highs amid fears that unrest in Iran could trigger US military action and disrupt production or shipping.
Trump said on Wednesday that he had been told killings linked to Iran’s crackdown on nationwide protests were subsiding and that he believed there was currently no plan for large-scale executions.