US Session: U.S. markets expected to open higher amid rising investor optimism

Here are five key themes investors are watching at the start of the trading day:

1. Rebound check
   Despite another encouraging inflation report, the S&P 500 ended yesterday’s session in negative territory. Declines in banking and technology stocks pushed the index lower for a second consecutive day.

Weaker-than-expected monthly producer price data, released after the consumer inflation report, failed to provide sufficient momentum for investors to take on additional risk. Shares of Wells Fargo, Citigroup, and Bank of America fell following their earnings reports, as the banking sector remains under pressure from President Donald Trump’s proposal for a one-year 10% cap on credit card interest rates.

All companies in the so-called “Magnificent Seven” closed lower, led by Amazon and Meta, which each declined by around 2.5%. Meanwhile, gold and silver continued their record-breaking rally as investors used them as hedges against political risk. In contrast, oil prices moved lower after Trump signaled that he may refrain from launching an attack on Iran.

2. Bank earnings
   Goldman Sachs and Morgan Stanley are releasing their fourth-quarter results, bringing a key week for major bank earnings to a close.

Goldman Sachs reported earnings of $14.01 per share on revenue of $13.45 billion, with the market still assessing how closely the results align with expectations. The stock traded unevenly in premarket activity. Morgan Stanley exceeded forecasts on both revenue and earnings, sending its shares up more than 2%.

3. Greenland tensions
   A White House meeting between representatives of the United States, Denmark, and Greenland failed to ease tensions between the parties. Donald Trump stated that any solution that does not involve U.S. control over Greenland is unacceptable.

Danish officials emphasized that any plan that does not respect Greenland’s right to self-determination is likewise unacceptable. Despite the differences, all sides expressed a willingness to continue dialogue. Meanwhile, five NATO countries announced plans to deploy a limited number of troops to Greenland for a joint military exercise.

4. Cash offer
   Netflix is considering revising its offer for Warner Bros. Discovery’s assets into an all-cash bid. Such a move would allow for a faster shareholder vote and could bring a decision as early as late February or early March.

The development comes amid rising tension in the media sector, after Paramount Skydance filed a lawsuit against Warner Bros. Discovery related to its own acquisition attempt and prepares for a proxy battle.

5. Supply and demand
   Donald Trump confirmed that the U.S. will approve the sale of Nvidia’s H200 AI chips to China, provided a 25% discount is granted to the U.S. government. According to Trump, the model is not top-of-the-line but remains attractive to the Chinese market.

However, it remains unclear whether China will accept the shipments. Reports suggest local customs authorities are not allowing imports of these chips, putting pressure on Nvidia and other semiconductor stocks.

S&P 500

S&P 500 futures rise on Thursday as Wall Street attempts to rebound after two consecutive losing sessions.

Contracts on the broader index gain 0.4%, while Nasdaq-100 futures climb 0.9%. At the same time, Dow Jones Industrial Average futures slip by 24 points, or 0.1%.

Semiconductor stocks lead gains in early trading after Taiwan Semiconductor Manufacturing Co. reported another record quarter. The company posted a 35% jump in profits, restoring investor confidence in the artificial intelligence theme. TSMC shares rise about 6% in premarket trading, Micron Technology adds nearly 3%, and Nvidia and AMD each gain more than 1%.

The moves also follow Trump’s signing of an executive order imposing a 25% tariff on certain semiconductors. However, the measure will not apply to chips imported for the construction and expansion of U.S. technology supply chains—a signal markets interpreted as relatively moderate.

Morgan Stanley shares climb more than 1% in early trading after the bank reported better-than-expected fourth-quarter results. Goldman Sachs posts a modest decline, despite also delivering earnings above forecasts.

Markets also find support in falling oil prices. Futures on Brent crude and near-term contracts on U.S. light crude both decline by nearly 3%.

Wall Street is coming off a weak session on Wednesday, when technology stocks weighed on the indices. Earlier, Reuters reported that Chinese customs authorities had informed brokers that Nvidia’s H200 chips were not approved for import into the country, intensifying concerns over access to key markets.

Geopolitical risks continue to influence investor sentiment. Oil prices initially rose on escalating tensions between the U.S. and Iran and fears of supply disruptions, but later retreated after Trump signaled he may refrain from military action.

At the same time, officials from the Trump administration met with the foreign ministers of Denmark and Greenland. Disagreements over ownership and control of Greenland remain unresolved, with Danish officials describing the positions of the two sides as fundamentally different.