NAS100 to recover? TSMC’s positive earnings report.

• NAS100 worst one-day performance since 2022
   
• US-China trade tensions escalate
   
• Investors shift to small-cap
   
• Potential interest rate cuts influence market

The NAS100 (NSADAQ 100) is trying to recover after the world's largest chipmaker - TSMC - reported positive earnings.

TSMC reported both higher-than-expected revenue ($673.5 billion vs. $653.1 billion - expected) and earnings per share/EPS ($9.56 vs. $9.06).

At the time of writing, TSMC shares were up 2.24% in premarket trading.

According to the analyst consensus, TSMC stock is expected to grow 21.20% (average) over the next 12 months.

NAS100 (NASDAQ 100 Index)

The leading U.S. tech index plunged nearly 3% on Wednesday (July 17), its worst one-day performance since 2022.
 

The decline came amid a potential escalation in trade between the US and China, with the latter considering implementing a new set of trade restrictions related to US chip sales.

Tokyo Electron and ASML (available on Alpari) were both mentioned in the US government's statement.

ASML has just reported its Q2 financial results with higher-than-expected EPS ($4.01 vs. $3.72 - expected) and revenue ($6.2B vs. 6.06B - expected).

The recent downward pressure on the NAS100 has also come from the ongoing capital rotation from the mega-cap companies to the smaller ones (e.g. included in the RUS2000 Index – available on Alpari) as investors reassess their trading strategies in light of potential interest rate cuts, political turmoil and other related factors.