Semiconductor profit-taking weighs on Asia
Profit-taking in the semiconductor sector continued across Asian equity markets today. Following the release of TSMC's official quarterly results, which largely confirmed the company's preliminary figures, investors were left with little new to digest.
Despite another quarter of strong revenue and earnings growth, scepticism persists over the sustainability of demand for AI-related infrastructure and data-centre investments as the semiconductor cycle moves into its later stages. That caution is also relevant for technology-sensitive benchmarks such as the Nasdaq 100, where expectations around AI infrastructure spending remain high.
US economy remains resilient
Geopolitical tensions in the Middle East remain elevated. Investors are closely monitoring the next steps taken by the United States in the region, with growing concern over the potential consequences for the global economy.
For now, however, the Federal Reserve's latest Beige Book continues to paint a constructive picture of the US economy. Eleven of the twelve Federal Reserve districts reported either moderate economic growth or signs of ongoing stabilisation, reinforcing the view that the US economy remains fundamentally resilient.
US data moves into focus
Attention now turns to a busy US macroeconomic calendar. Weekly jobless claims, retail sales and the Philadelphia Fed Manufacturing Index are all expected to provide further insight into the strength of domestic demand and economic activity.
