U.S. Stock Futures Edge Higher on AI Optimism and Strong Bank Earnings

Market Overview - U.S. stock futures are showing a positive trajectory, with major indexes expected to gain at the open due to strong corporate earnings and optimism in the AI sector [1][2] - The S&P 500 futures are up approximately 0.2% to 0.4%, Nasdaq 100 futures are leading with gains of around 0.5% to 0.6%, and Dow Jones futures are slightly higher, indicating a positive sentiment in the market [2] Oil and Treasury Yields - Oil prices have rebounded, with U.S. crude (WTI) trading around $59.95 per barrel and Brent crude at approximately $64.69 per barrel, both up around 1.5% following easing tensions in Iran [3] - U.S. Treasury yields are mixed, with the benchmark 10-year Treasury yield steady near 4.17% [3] Recent Trading Performance - Major U.S. indexes closed positively on Thursday, with the S&P 500 climbing approximately 0.3% to 6,944.47 points, Nasdaq Composite advancing around 0.2% to 23,530.02 points, and Dow Jones gaining about 0.6% to 49,442.44 points [4] - Despite recent gains, the major indexes are on track for weekly losses, with the S&P 500 down roughly 0.3%, Nasdaq off about 0.6%, and Dow Jones seeing a modest decline of approximately 0.1% [5] Upcoming Earnings Reports - The fourth-quarter earnings season is concluding, with several regional U.S. banks, including PNC Financial Services Group, M&T Bank, and State Street, set to report their quarterly results [6] Economic Data Releases - China is expected to report its 2025 economic growth data on Monday, forecasting an annual pace of around 4.5% [7] - U.S. inflation figures for December, including CPI and Core CPI, are scheduled for release next Tuesday, along with Industrial Production and Capacity Utilization data [7] AI Sector Developments - The AI sector is a significant market driver, with chip stocks like Nvidia and AMD seeing gains due to strong demand [8] - Taiwan Semiconductor Manufacturing's shares jumped over 4% following robust fourth-quarter results, further boosting optimism around AI [8] Banking Sector Performance - PNC Financial Services Group surged 3.2% to 3.5% in premarket trading after exceeding fourth-quarter targets, driven by higher interest income and fees [9] - M&T Bank also rose 1% after surpassing analyst forecasts, while Goldman Sachs and Morgan Stanley reported strong quarterly results, with shares surging over 4% and nearly 6%, respectively [10] Corporate News - Mitsubishi Corporation announced its acquisition of Aethon for approximately $5.2 billion [12] - Chevron Corporation reached a Final Investment Decision to expand production capacity at the Leviathan natural gas reservoir offshore Israel [12] - A U.S.-Taiwan trade deal involves $250 billion in new investments by Taiwanese semiconductor and tech companies in the U.S., aimed at strengthening the semiconductor supply chain [13]