Dow Jones Index Hangs On TSMC Earnings to Resist Slip. Will It Hold?

The Dow Jones Index recorded a second successive loss-making session on Wednesday as tech stocks selloff injected a bearish momentum in the market. The decline was underpinned by Nvidia’s filing statement that the US Government henceforth requires it to obtain permits for its H20 chips exports to China. The AI tech giant revealed that the restriction could cost it $5.5 billion, and the news sent its stock down by 6.87%. Another GPU chips giant, AMD ended the day at -7.34%.

Meanwhile, the Dow Jones Index closed the session at -1.73%, down by 700 points. However, Taiwan Semiconductor Manufacturing Company (TSMC) earnings lifted the mood in after hours trading, and that will likely overflow into Thursday’s session.

TSMC, whose customers include Apple and Nvidia, reported revenues of $25.53 billion for the quarter ended March 2025, beating analysts’ forecast figure of $25.37 billion. The results lifted the mood in the market, injecting hope that a strong support underlays the current trade tariff war fears.

In addition, the Dow Jones Index could sail on the tailwinds provided by optimism over US-Japan trade talks. President Donald Trump announced via Truth Social that he had met Japan’s trade delegations, describing the outcome as “Big Progress”. While the announcement lacked specifics, it raises the prospect of increased engagements between America and its biggest trading partners, and could potentially draw in China in the coming days.

Dow Jones Index Prediction

The Dow Jones Index pivots at 39,739 points and resistance at that level favours the sellers to be in control. The action will likely go lower to test the first support at 39,350. Breaking below that level could open the pathway to test the second support at 39,025.

On the other hand, going above 39,739 points will signal the onset of bullishness. The first barrier will likely be at 40,199, above which the downward narrative will be invalid. In addition, an extended control by the buyers could take the action higher to test 40,820.