U.S. Stock Futures Pause After Rally, Chip Stocks Under Pressure Ahead of Economic Reports and Earnings

U.S. stock index futures were subdued on Thursday, July 16, as investors took a breather following a two-day rally. Chip stocks continued to face pressure, extending declines from the previous session, despite advanced AI chipmaker TSMC reporting a 77% jump in second-quarter profit and announcing a $100 billion investment in the United States. The broader market had previously risen due to a softer-than-expected Producer Price Index (PPI) reading and benign consumer inflation data earlier in the week, which helped ease inflation concerns and reduce worries about tighter Federal Reserve policy. Investors are now awaiting fresh economic reports and further quarterly earnings.