M Alfathan Rahman
M Alfathan Rahman
TSMC beat profit estimates while markets digest a hotter-than-expected US inflation print.
Wall Street closed lower on Wednesday. The Nasdaq Composite fell 1.9%, the S&P 500 lost 1.1% and the Dow slipped 0.1% after September inflation came in above forecasts (Investing.com).
On Thursday, TSMC reported third-quarter profit above estimates. Tonight the market looks to US producer prices (PPI) and retail sales, both due at 8:30am ET.
| Stock | Movement | What to Watch |
|---|---|---|
| TSM | Q3 results out Thursday | EPS of $4.60 vs a $4.45 estimate; the reaction in tonight's US session |
| CRWV | -16% on Wednesday | AI infrastructure sentiment after the CPI print |
| NBIS | -11% on Wednesday | AI infrastructure sentiment after the CPI print |
| DELL | -11% on Wednesday | AI infrastructure sentiment after the CPI print |
| ORCL | -9% on Wednesday | AI infrastructure sentiment after the CPI print |
Source: CRWV, NBIS, DELL and ORCL moves and index data from Investing.com; TSMC results from AP via Yahoo Finance.
TSMC (TSM) reported third-quarter profit of $23.86 billion. Earnings per share were $4.60 against a $4.45 estimate, and revenue was $46.72 billion against a $45.62 billion estimate (Yahoo Finance). Before the release, analysts expected a sixth straight quarter of record profit. TSMC is a key supplier to Nvidia (NVDA) and Apple (Investing.com).
US annual inflation rose to 3.7% in September from 3.4% in August, above the 3.6% forecast. Core prices rose 0.3% on the month against a 0.2% forecast. Gasoline jumped 9.1% and drove more than half of the monthly increase (Investing.com).
Markets raised the odds of a further Fed rate hike at the October 27-28 meeting, though those odds later eased as Fed officials signaled they could wait for a clearer picture of inflation (Investing.com).
Producer prices (BLS) and retail sales (Census Bureau) are due tonight. Either report could firm up or ease rate-hike expectations after the CPI data.
Late Wednesday US time, S&P 500 futures were down 0.3% at 7,747.50 and Nasdaq 100 futures fell 0.8% to 29,943. Dow futures were flat at 51,866. AI infrastructure names took the heaviest hits on Wednesday: CoreWeave (CRWV) fell 16%, Nebius (NBIS) and Dell (DELL) each lost 11%, and Oracle (ORCL) dropped 9% (Investing.com).
Treasury yields jumped after the CPI report. Brent crude is holding above $105 a barrel (Investing.com), while Yemen's Houthis vowed more attacks on Saudi Aramco oil facilities (Investing.com).
TSMC's results point to AI chip demand that is still strong, but the market is weighing the risk of higher rates. Tonight's PPI and retail sales data are the next clues on the Fed's path.
How chip and AI infrastructure stocks respond tonight may show which of those forces weighs more.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
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