U.S. stock index futures strengthen as Taiwan Semiconductor's performance boosts the rebound in the chip sector

U.S. stock index futures strengthened on Thursday, with the rebound in the chip sector soothing market jitters. Taiwan Semiconductor's performance inspired the major indices to rise. At 6:55 New York time, S&P 500 index futures rose by 0.4%, Nasdaq 100 index futures rose by 0.9%, and Dow futures remained flat. Chip stocks led the gains, with Taiwan Semiconductor's quarterly profit growth of 54% surpassing expectations. This offset the impact of ASML Holding's downward revision of its 2025 performance guidance. The Stoxx 600 index rose by 0.7%. "Taiwan Semiconductor's earnings are clearly positive, which to some extent alleviates concerns surrounding the chip industry after the dismal report from ASML," said Michael Brown, a strategist at Pepperstone Group Ltd. "The risk outlook remains positive, especially as central banks in developed markets continue to unwind restrictive measures at a fairly rapid pace." The European Central Bank is set to announce its policy decision, with the market expecting a 25 basis point cut in the benchmark interest rate to 3.25%. The yield on the 10-year U.S. Treasury rose by 2 basis points to 4.03% before the data was released