As of the time of publication, the three major indices had divergent trends, with the Dow Jones up 0.22%, the S&P 500 up 0.24%, and the Nasdaq up 0.37%.

Corporate earnings reports are receiving attention. The company announced on Thursday that quarterly profits increased by 54%, exceeding expectations. Its performance helped reverse the negative impact of ASML Holding's downward 2025 guidance, which had previously halted the three-month uptrend of chip stocks in US trading.

Semiconductor stocks surged, with Taiwan Semiconductor leading the gains after the company reported strong third-quarter performance. Nvidia, a darling of artificial intelligence, followed Taiwan Semiconductor higher, as AMD also rose.

Strategist Michael Brown of Pepperstone Group stated, 'Taiwan Semiconductor's performance is clearly a bullish signal, easing market concerns about the chip industry following ASML's bleak report. The risk outlook remains very optimistic, especially as central banks in developed markets are rapidly lifting policy constraints.'

Founder Adam Crisafulli of Vital Knowledge stated, 'This week's corporate earnings announcements, especially those of large financial companies, show that the market environment is just right. Corporate profit growth is resilient, inflation pressures are easing, and the economy is normalizing.'

He said, 'This is more important than anything, truly helping to sustain market levels. It has catalyzed many of these cyclical value sectors. We have recently seen weakness in the technology sector and strength in other sectors.'

In fact, boosted by Morgan Stanley, the financial sector rose 1.2% on Wednesday. The bank's third-quarter profits and revenues both exceeded expectations.

On the economic data front, the number of initial jobless claims in the United States unexpectedly decreased last week, while the states in the southeastern United States affected by Hurricane "Helen" the previous week saw a surge in applicants.

According to data released by the US Department of Labor on Thursday, as of the week ending October 12, initial jobless claims decreased by 19,000 to 241,000. The median forecast from economists surveyed by Bloomberg was 259,000. For the week ending October 5, continued claims for unemployment benefits increased to 1.87 million people, reaching the highest level since July.

Another set of data indicates that US retail sales in September exceeded expectations, with significant growth across various retail categories, indicating that strong consumer spending continues to drive the economy.

Data released by the US Department of Commerce on Thursday showed that on an unadjusted basis for inflation, retail sales in September increased by 0.4% compared to August's 0.1% increase. Excluding sales of autos and gasoline stations, retail sales increased by 0.7%.

The September retail sales data exceeded expectations, supporting the view of a strong third-quarter economic growth. Signs of economic recovery may not prevent the Fed from cutting interest rates again next month, but could reinforce expectations of a 25 basis point rate cut.

Goldman Sachs predicts that the Fed will cut interest rates by 25 basis points for six consecutive times. The bank stated on Wednesday that it expects the Fed to lower interest rates by 25 basis points at each meeting from November 2024 to June 2025, with a final rate range of 3.25-3.5%.

Last month, the Fed cut the overnight rate by 50 basis points, citing increased confidence in inflation falling back to its annual target of 2%. The overnight rate is currently in the 4.75%-5.00% range, guiding interbank payment rates and affecting consumer rates.

According to the CME FedWatch Tool, the market currently expects a 92.1% probability of a 25 basis point rate cut at the Fed's next meeting, with the probability of rates remaining unchanged at only 7.9%.

Goldman Sachs also stated that it expects the European Central Bank to cut interest rates by 25 basis points at Thursday's monetary policy meeting, and noted that it expects to cut rates by 25 basis points in each consecutive move until the policy rate reaches 2% in June 2025.

Overseas central bank news, the European Central Bank cut interest rates for the third time to support a weak economy.

The European Central Bank announced the third interest rate cut of the year on Thursday. Due to the hastening pace of inflation decline, the European Central Bank is providing support to the struggling economy through rate cuts.

The ECB lowered the key deposit rate by 25 basis points to 3.25%, in line with the expectations of all analysts surveyed by Bloomberg. The European Central Bank stated that the inflation control process is 'progressing smoothly,' but did not provide any clues as to when or at what pace the rates will be further reduced.

The European Central Bank stated in its announcement: 'Will maintain sufficiently restrictive policy rates when necessary to achieve this target. The Governing Council will continue to determine the appropriate level and duration of restrictions based on data and through sequential meetings.'

Focus stocks

• Growth tech stocks rallied, with Taiwan Semiconductor rising over 10% and NVIDIA up nearly 3%.

• Phlx Semiconductor Index collectively rose, with Micron Technology rising over 4%, and Broadcom up by nearly 4%.

• $Taiwan Semiconductor (TSM.US)$Surged more than 10%, Q3 performance and Q4 guidance both exceeded expectations.

• $Nixxy (NIXX.US)$Pre-market soared over 150%, the company disclosed new acquisition strategy.

• $Elevance Health (ELV.US)$Dropped more than 13%, Q3 net income decreased by 22%, revenue exceeded expectations to reach 45.11 billion USD.

• $Uber Technologies (UBER.US)$Dropped more than 2%, reports suggest Uber is exploring the possibility of acquiring the travel booking website Expedia.

Editor/ping