Stocks Pause Ahead of PCE, Micron Earnings - Europe Market Wrap
US stocks paused as investors awaited the Federal Reserve’s preferred inflation gauge and earnings from Micron Technology, two key events for the interest-rate outlook and the artificial-intelligence trade. S&P 500 futures were little changed ahead of the latest personal consumption expenditures price index. With persistently high oil prices adding to inflation pressures and bond yields at multi-decade highs, the data are expected to show inflation accelerated in August. Treasuries were steady a day after 30-year yields reached their highest level since 2002. Brent crude rose modestly above $103 a barrel and was up about 14% for the month, despite signs that Middle East oil flows are returning toward pre-war levels. The dollar slipped 0.1% from its highest level since July. Markets are approaching the end of a volatile month in which a sharp repricing of expectations for Federal Reserve rate hikes, driven by concerns over energy-related inflation, fueled a bruising bond selloff. The S&P 500 has limited its losses partly through a narrow rally in AI-linked stocks on optimism over the sector’s outlook. Micron’s results after the close will put that optimism to the test. European stoc
US stocks paused as investors awaited the Federal Reserve’s preferred inflation gauge and earnings from Micron Technology, two key events for the interest-rate outlook and the artificial-intelligence trade. S&P 500 futures were little changed ahead of the latest personal consumption expenditures price index. With persistently high oil prices adding to inflation pressures and bond yields at multi-decade highs, the data are expected to show inflation accelerated in August. Treasuries were steady a day after 30-year yields reached their highest level since 2002.
Brent crude rose modestly above $103 a barrel and was up about 14% for the month, despite signs that Middle East oil flows are returning toward pre-war levels. 1% from its highest level since July. Markets are approaching the end of a volatile month in which a sharp repricing of expectations for Federal Reserve rate hikes, driven by concerns over energy-related inflation, fueled a bruising bond selloff. The S&P 500 has limited its losses partly through a narrow rally in AI-linked stocks on optimism over the sector’s outlook.
Micron’s results after the close will put that optimism to the test. European stocks were heading for their first monthly decline since March. Inflation exceeded expectations in France and Italy, adding pressure on the European Central Bank to continue raising interest rates. The 10-year French yield premium over German debt widened one basis point to 120 basis points, its highest since 2012.