US Stocks-Wall St futures pause after two-day rally as investors await data, earnings

U.S. stock index futures were subdued on Thursday as investors paused after a two-day rally, while chip stocks remained under pressure ahead of fresh economic reports and another batch of quarterly results.

Chip stocks extended declines from the previous session when investors rotated into megacap technology names and banks following strong results from major lenders.

U.S.-listed shares of TSMC TSM.N fell 3.2% in premarket trading, even after the advanced AI chipmaker reported a 77% jump in second-quarter profit that topped market expectations. The company also said it would invest an additional $100 billion in the United States.

Memory-chip makers were among the biggest decliners, with Western Digital WDC.O and Seagate Technology STX.O down 3.9% and 3.3%, respectively.