US stocks mixed as investors eye earnings and Middle East tensions; Dow falls 464 points, TSMC ADR up over 1%

U.S. stock markets saw a mixed performance on Thursday, with the Dow Jones Industrial Average dropping 464.02 points, or 0.85%, to close at 53885.10. The S&P 500 declined 0.18%, and the Nasdaq saw a 0.06% dip. In contrast, the Philadelphia Semiconductor Index rose 0.33%.

Investors are currently digesting a wave of corporate earnings reports. Cloud software provider Salesforce saw its stock fall 3.2% after announcing leadership changes. Memory chip maker Sandisk's fourth-quarter forecast failed to impress, leading to a more than 6.8% drop in its shares. Advertising technology company AppLovin experienced a nearly 20% plunge following mixed quarterly results, while Western Digital's stock also fell 13% despite exceeding expectations in its fourth quarter.

Despite some individual company struggles, data from the London Stock Exchange Group indicates that 84.8% of the 382 S&P 500 companies that have reported earnings so far have exceeded analyst expectations. Meanwhile, progress has been made in de-escalating Middle East tensions, with Iran and Oman reportedly taking steps toward an agreement to reopen the Strait of Hormuz. An Iranian government official suggested that vessels transiting the strait would no longer face fees or tolls under a provisional accord.

Looking ahead, market participants are anticipating Friday's release of U.S. non-farm payroll data. This report is expected to influence market expectations regarding the Federal Reserve's future interest rate decisions.