OPENING CALL
U.S. stocks were poised for a higher open Thursday after concerns about high valuations and additional regulation hit tech names Wednesday.
Thursday's share optimism follows an apparent de-escalation of tensions between the U.S. and Iran , which weighed on safe-haven demand and led to falls to oil and precious metal prices.
The president's comments led investors to ease bets the U.S. would strike Iran, leading to declines amongst European defense companies .
Sentiment was further influenced by Trump's softer tone on Federal Reserve Chair Jerome Powell. In an interview with Reuters Wednesday, Trump said he has no plan to fire Powell despite a Justice Department criminal investigation.
Elsewhere, the Fed's Beige Book, which compiles reports from businesses, banks and community groups across the Fed's 12 districts, showed activity picking up slightly , delivering a somewhat brighter view of the U.S. economy.
Meanwhile, Taiwan Semiconductor Manufacturing Co.'s record earnings fueled a rally in U.S. tech names.
Investors will likely pay close attention to import and export price indexes for November as well as the country's weekly jobless claims.
The Empire State manufacturing survey, a key barometer for economic activity, is expected at 1330 GMT.
Stocks to Watch
Nvidia shares rose 1.3% after TSMC's earnings analysts' expectations.
TSMC's result also lifted other U.S. companies including: AMD up 2.2%, Applied Materials up 6.9%, Broadcom which rose 2.6%, KLA which traded 5.7% higher and Lam Research shares which gained 7.3%.
Chevron shares fell 0.7% and Exxon Mobil declined 0.9% as oil prices retreated.
Watch For:
Fourth quarter earnings from Goldman Sachs and Morgan Stanley.
Today's Top Headlines/Must Reads:
- Amazon Is Buying America's First New Copper Output in More Than a Decade
- Blackstone Real-Estate Fund Stages Comeback With Best Return in Three Years
- It's Not Time to Dump Megabank Shares Just Yet
MARKET WRAPS
Forex:
The dollar rose slightly against a basket of currencies as traders continued to weigh Wednesday's U.S. retail sales and producer prices data and awaited other economic indicators.
The euro stayed lower against the dollar, showing little reaction to German economic growth data that came in line with expectations.
The euro remains driven by the dollar, which is higher following better-than-expected U.S. retail sales data Wednesday and amid growing support for Federal Reserve Chair Jerome Powell.
Sterling edged lower against the dollar and rose slightly against the euro after U.K. economic growth data exceeded expectations. Gross domestic product increased in November above the 0.1% rise forecast by economists in a WSJ survey.
Bonds:
The 10-year Treasury yield edged higher but yields were overall little changed in Asian afternoon trade, as data, geopolitics and monetary policy expectations remained the key inputs.
"At the margin, one could point to a broad increase in policy uncertainty driving a degree of caution, ranging from the Trump Administration's continued efforts to erode Fed policy independence, through to geopolitical risk escalating in the Middle East, while not forgetting the ongoing trade saga," Pepperstone said.
Energy:
Oil prices fell in early trading after Trump said Iran had stopped killing antiregime protesters, easing concerns over imminent military action against the country.
A strike could have threatened Iranian crude output and key shipping routes, raising the geopolitical risk premium significantly.
Gas
European natural-gas prices rose in early trading as unrest in Iran raised concerns about potential disruptions to global markets, despite easing fears of imminent U.S. action against Tehran.
"Parts of Asia, including northwest China, the Korean Peninsula and Japan are set to be hit by a cold wave, which threatens to push demand for heating higher," ANZ Research said.
Metals:
Gold prices fell as investors booked profits after the precious metal notched a record high Wednesday. Easing fears of imminent U.S. military action against Iran also weighed on demand for havens.
Silver prices retreated after hitting a fresh record on Wednesday as the U.S. stepped back from immediately imposing tariffs on critical mineral imports.
Copper futures on the London Metal Exchange fell as most of the metal's price rally has played out, leaving the market increasingly exposed to a correction, according to Goldman Sachs.
TODAY'S TOP HEADLINES
Two Fitness Companies Are Merging With Jared Kushner's Backing
The parent company of ClassPass, a workout booking app, is merging with fitness-tech company EGYM in a bid to create an industry leader in the fitness space with the backing of Jared Kushner's private-equity firm.
China's Alibaba Links Qwen AI App to Vast Consumer Ecosystem
Alibaba Group is rolling out a major update of its Qwen app, integrating the chatbot into its ecosystem and allowing it to carry out tasks on users' behalf.
With the update, users can ask Qwen to perform actions such as ordering milk tea and booking flights, rather than navigating different apps by themselves.
Richemont's Jewelry Shines Once More as Luxury Eyes Stronger Year Ahead
Cartier-owner Richemont said jewelry sales continued to drive revenue growth at the end of the year, offering fresh good news for a luxury-goods sector hoping to build momentum over the year ahead.
The Swiss group, which alongside star jewelers Cartier and Van Cleef & Arpels houses high-end watchmakers like Vacheron Constantin and fashion brands including Chloe, booked sales growth of 11% at constant exchange rate to 6.4 billion euros ($7.45 billion) in the third quarter of its fiscal year through December. That was a little higher than analysts' expectations and marks a moderate pick-up in the pace of growth from its first half.
Rio Tinto, BHP Join Forces to Unlock More Australian Iron Ore
Rio Tinto and BHP Group have agreed to work together on some new projects at neighboring iron-ore mines in Australia that could help bolster their future production of the steel ingredient.
The companies said that by collaborating on new projects at their neighboring Yandicoogina and Yandi iron-ore operations in Australia's Pilbara region, they could extract up to 200 million metric tons of iron ore, some of which might have otherwise been stranded.
Germany's Economy Grows for First Time Since 2022
Europe's largest economy showed signs of recovery last year after almost a decade in stagnation, but declining exports, intense competition from China and ensuring Berlin's massive stimulus funds are effectively deployed remain challenges to sustained growth.
Gross domestic product in the eurozone's largest member increased 0.2% in 2025, German statistics agency Destatis said Thursday, a turnaround after the economy contracted 0.9% and 0.5% in 2023 and 2024, respectively. Growth was also at 0.2% in the fourth quarter, according to an early estimate by Destatis.
U.K. Economy Grows More Than Expected
The U.K. economy grew more than expected in November, a boost for the government as it seeks to build momentum after years of economic drift.
Economic activity increased by 0.3% in the month, the Office for National Statistics said Thursday. This compares with a 0.1% fall in October, and was above a consensus of economists polled by The Wall Street Journal which expected a rise of 0.1%.
Banks and Crypto Clash Over Tokens That Pay More Than Deposits
WASHINGTON-The cryptocurrency and banking industries are locked in a lobbying battle over digital tokens that yield annual payouts, a fight that threatens to derail legislation intended to bring crypto into mainstream finance.
The two sides are clashing about what crypto firms call rewards, or annual payments to investors based on a percentage of their total holdings. They are commonly used for stablecoins, popular tokens typically pegged to the U.S. dollar and used for trading, overseas payments and money transfers.
Trump Not Persuaded to Abandon Greenland Pursuit After White House Talks
Top officials from Denmark and Greenland said after a visit to the White House on Wednesday that they hadn't persuaded President Trump to abandon his ambitions to annex Greenland.
Vice President JD Vance and Secretary of State Marco Rubio hosted the Danish and Greenlandic foreign ministers at the White House in the midst of an extraordinary standoff between the U.S. and its closest allies over the future of the island of 57,000 people. Political leaders in Greenland, a semiautonomous territory of the Danish kingdom, have repeatedly insisted that their home isn't for sale after Trump's plans sparked blowback.
Trump Beats Back GOP Rebellion on Venezuela War Powers
WASHINGTON-The Senate voted to kill a war-powers resolution aimed at limiting President Trump's authority in Venezuela, after the administration assured two pivotal GOP lawmakers that the U.S. has no plans to deploy ground troops or pursue a military occupation.
The Republican-led Senate voted 51-50 late Wednesday to drop the measure, with Vice President JD Vance casting the deciding vote. It came after an intensive lobbying push by the White House and cabinet officials, especially Secretary of State Marco Rubio, who personally engaged skeptical GOP senators by arguing that the resolution was unnecessary and risked constraining the president during a fast-moving situation.
State Department to Pause Visa Processing for 75 Countries
WASHINGTON-The State Department will indefinitely pause immigrant visa processing for 75 countries as part of the Trump administration's ongoing effort to block low-income foreigners from immigrating to the U.S.
(MORE TO FOLLOW) Dow Jones Newswires
01-15-26 0630ET
