Chip Selloff Deepens as US Earnings Season Begins - Europe Market Wrap
A selloff in chipmakers extended into a sixth day, weighing on equity markets as major Wall Street banks kicked off the US earnings season. Nasdaq 100 futures fell 0.6%, while S&P 500 futures slipped 0.1%. An ETF tracking semiconductor stocks was on course for its sixth consecutive daily loss. JPMorgan Chase dropped more than 3% in early trading after fixed-income trading revenue unexpectedly declined. In Europe, the Stoxx 600 gained 0.4%, supported by lower oil prices and bond yields. Parts of the artificial-intelligence trade remain under pressure as investors reassess whether the pace of investment is sustainable amid growing safety concerns and signs of funding strain. Strong corporate earnings are providing a counterweight, with investors looking for results to support the broader market. Major US bank stocks have also entered correction territory as earnings season gathers pace. The KBW Bank Index has fallen around 12% from its August peak, exceeding the 10% threshold commonly used to define a technical correction. Global bonds rallied, with French debt outperforming. The premium on 10-year French yields over German bunds narrowed by around four basis points to below 140 basi
A selloff in chipmakers extended into a sixth day, weighing on equity markets as major Wall Street banks kicked off the US earnings season. 1%. An ETF tracking semiconductor stocks was on course for its sixth consecutive daily loss. JPMorgan Chase dropped more than 3% in early trading after fixed-income trading revenue unexpectedly declined.
4%, supported by lower oil prices and bond yields. Parts of the artificial-intelligence trade remain under pressure as investors reassess whether the pace of investment is sustainable amid growing safety concerns and signs of funding strain. Strong corporate earnings are providing a counterweight, with investors looking for results to support the broader market. Major US bank stocks have also entered correction territory as earnings season gathers pace.
The KBW Bank Index has fallen around 12% from its August peak, exceeding the 10% threshold commonly used to define a technical correction. Global bonds rallied, with French debt outperforming. The premium on 10-year French yields over German bunds narrowed by around four basis points to below 140 basis points. Brent crude snapped a three-day winning streak, while the dollar fell for the first time in a week.
Federal Reserve Governor Christopher Waller said rising long-term Treasury yields were helping restrain demand in rate-sensitive sectors such as housing and autos, effectively doing some of the work of tighter monetary policy.