What Happened

U.S. stock futures were little changed early Thursday, July 16, 2026, as markets built on gains from the previous session following softer-than-expected June inflation data. The Nasdaq 100 futures fell 0.4%, while S&P 500 futures declined 0.2% and Dow Jones futures remained flat.

Investor sentiment was supported by Taiwan Semiconductor Manufacturing Co. reporting a 77% jump in second-quarter net profit, reaching T$706.6 billion ($22 billion). The chipmaker manufactures advanced processors for major clients including Nvidia and Apple, and its strong results helped offset broader concerns about lofty AI-related valuations.

Additionally, shares of Alibaba and Baidu climbed nearly 5% and about 4% respectively after Apple secured regulatory approval to launch its Apple Intelligence features in China. This approval removes a significant hurdle for the tech giant, potentially aiding its competition in the Chinese smartphone market. Meanwhile, U.S. Central Command completed another round of strikes against Iran, with President Donald Trump reiterating that military operations would continue until negotiations begin.

Why It Matters

The market's steady opening highlights a tug-of-war between positive corporate fundamentals and lingering macroeconomic anxieties. TSMC's record profit demonstrates that demand for advanced chips remains robust, yet the broader market context shows investors are increasingly scrutinizing the debt-funded nature of AI spending. This scrutiny has previously dragged the Nasdaq and S&P 500 to multi-week lows, indicating that high valuations in the technology sector are under pressure.

Simultaneously, geopolitical risks continue to loom over the market. The ongoing military tensions between the United States and Iran, coupled with the completion of new strikes, keep oil shipping routes in the Strait of Hormuz at risk. A renewed spike in oil prices could reignite inflation pressures, which would directly counteract the recent relief provided by softer June inflation data.