Tech Stocks Surge on Positive Forecasts Amid Economic Resilience

U.S. stock indexes are on the rise, bolstered by an optimistic forecast from Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker. The company predicts a Q4 revenue jump, sparking gains in semiconductor stocks like Nvidia and Broadcom. U.S. retail sales growth also supports a strong consumer outlook.

U.S. stock markets are gearing up for gains as a positive outlook from Taiwan Semiconductor Manufacturing Co (TSMC) uplifts semiconductor stocks. TSMC, the leading contract chipmaker worldwide, has forecast a notable rise in fourth-quarter revenue, attributed to increasing demand for artificial intelligence chips.

TSMC's U.S.-listed shares surged 8.8% in premarket trading. The upbeat forecast also benefited other chip stocks like Nvidia, which rose 3.1%, and Broadcom, up 2.8%. Concurrently, a stronger-than-expected increase in September retail sales highlighted the enduring strength of the U.S. consumer market.

Despite uncertainties ahead of the U.S. presidential election, strong economic data is supporting the equity markets. Indicators of the economy's vitality continue to influence investor sentiment, even as experts caution of potential volatility due to high valuation expectations.

(With inputs from agencies.)