Tonight Highlights | AI Resilience Bolsters Gains as U.S. Futures Edge Higher

 

U.S. equity futures climbed on Thursday as persistent optimism over a potential U.S.-Iran peace framework outweighed caution from analysts. Both the S&P 500 and the Nasdaq closed at record highs in the previous session, with the tech-heavy Nasdaq securing its 11th consecutive day of gains—a streak not seen since late last year.

 

The primary catalyst remains the insatiable global demand for Artificial Intelligence. Despite the geopolitical shadow cast by Middle East tensions, TSMC’s robust Q1 results have reassured investors that the AI infrastructure super-cycle remains intact.

 

However, some experts advise temperance. Ned Davis Research Chief Global Investment Strategist Tim Hayes noted that sentiment and valuations have returned to late-February levels, suggesting the rally needs broader sector participation beyond just Big Tech to be sustainable. "I’m a bit more cautious now," Hayes added. "Many stocks have snapped back quickly, but it remains to be seen if this can broaden out."

 

In commodities, Brent crude is trading near $96 per barrel as maritime transit through the Strait of Hormuz remains severely restricted. U.S. Treasury yields eased slightly, while gold and silver moved higher on safe-haven interest.

Corporate Briefs

Elon Musk’s "Light Speed" Terafab: Reports indicate that Elon Musk has directed his team to move at "light speed" on the Terafab chip manufacturing project. Tesla has already engaged suppliers for equipment quotes and delivery timelines, aiming for initial production by 2029 with rapid scaling thereafter.

 

TSMC’s Blockbuster Earnings: The semiconductor giant reported Q1 net profit of NT$572.48 billion (approx. $17.7B USD), a massive 58.3% year-over-year increase. Revenue reached $35.9 billion, while gross margins stood at a stellar 66.2%.

 

TSMC CAPEX at Record High: CEO C.C. Wei confirmed that 2026 capital expenditure will hit the upper end of the $52B–$56B range. "Demand is extremely strong, particularly for HPC and AI," Wei stated. "We are accelerating equipment procurement, but supply remains tight."

 

Eli Lilly Addresses FDA Safety Concerns: Following reports that the FDA requested additional safety data for its oral weight-loss drug orforglipron, Eli Lilly clarified that no liver-related safety signals have been observed in Phase III trials. The company noted that post-marketing requirements are standard regulatory practice.

 

SoftBank’s Record Yields: SoftBank Group issued $1.5 billion in 10-year USD bonds with a record-high 8.5% coupon rate. The high interest reflects market jitters over SoftBank's aggressive AI investment strategy and debt levels. Proceeds will partially repay bridge loans related to its investment in OpenAI.