Taiwan Semiconductor Manufacturing Company (TSMC) delivered impressive performance, driving up chip stocks and pushing the Dow Jones Industrial Average to a new high. Retail sales in the US remained strong, while the European Central Bank (ECB) lowered interest rates by one basis point as expected. Bitcoin and Ethereum, on the other hand, maintained a steady consolidation near current levels.
TSMC held its earnings conference yesterday, announcing a net profit of NT$325.26 billion (approximately US$10.1 billion) for the third quarter ending on September 30, far exceeding analysts’ expectations of NT$300.2 billion.
TSMC Chairman Mark Liu emphasized the “crazy” demand for AI and assured that the company’s growth will remain robust for the next five years.
TSMC’s ADR (stock code: TSM) surged 9.79% on Thursday, reaching $205.84 per share, with a market value briefly surpassing $1 trillion, leading to a collective rise in chip stocks. Nvidia reached a new intraday high but narrowed its gains towards the end of the session, closing at $136.93 per share.
Data shows that US retail sales in September increased slightly higher than expected, boosting confidence in the continued strength of the US economy. Retail sales rose by 0.4% in September, surpassing market expectations of 0.3% and marking a growth of 0.1% from the previous month.
In addition, the number of initial jobless claims unexpectedly decreased by 19,000 to 241,000, lower than the expected 259,000. However, analysts predict that the number of claims may fluctuate in the near term due to the impact of recent hurricanes in the US.
The European Central Bank (ECB) lowered interest rates by 25 basis points as expected, marking the third rate cut this year. The inflation rate in the euro area for September has dropped to 1.8%, below the central bank’s target of 2%.
ECB President Christine Lagarde stated that the downside risks to the ECB’s inflation forecast are “likely” higher than the upside risks. Despite various positive indicators, including alleviating labor cost pressures, the ECB has not committed to a specific rate path and will rely on data and make continuous adjustments.
AI, TSMC, ECB, and the Dow Jones Index
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