Treasuries Set for Biggest Weekly Rally Since February - Europe Market Wrap
US stock futures edged higher as investors adopted a cautious stance ahead of Friday’s open, following a volatile week marked by a rotation out of artificial-intelligence stocks, a sharp Treasury rebound and hotter-than-expected inflation. S&P 500 futures rose 0.2%, while chipmakers remained under pressure in early trading. Tesla gained 4.3% after unveiling its long-delayed new Roadster sports car, while CoreWeave fell a further 4% as concerns over its credit risk persisted. Europe’s Stoxx 600 was on track to outperform the S&P 500 by its widest weekly margin since August. Treasury yields resumed their climb, with 10-year yields rising four basis points. Despite the latest move, they remained on course for their biggest weekly decline since February. The dollar fell 0.4%, while Brent crude fluctuated around $106 a barrel. Investors have faced a difficult week for technology stocks alongside a renewed flight to Treasuries. Concerns over the cost and sustainability of AI investment have dragged the Nasdaq 100 down 3% since Monday, while elevated energy prices continue to fuel inflation pressures and increase the risk of further monetary tightening by central banks. Federal Reserve Ch
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US stock futures edged higher as investors adopted a cautious stance ahead of Friday’s open, following a volatile week marked by a rotation out of artificial-intelligence stocks, a sharp Treasury rebound and hotter-than-expected inflation. S&P 500 futures rose 0.2%, while chipmakers remained under pressure in early trading. Tesla gained 4.3% after unveiling its long-delayed new Roadster sports car, while CoreWeave fell a further 4% as concerns over its credit risk persisted. Europe’s Stoxx 600 was on track to outperform the S&P 500 by its widest weekly margin since August.
Treasury yields resumed their climb, with 10-year yields rising four basis points. Despite the latest move, they remained on course for their biggest weekly decline since February. The dollar fell 0.4%, while Brent crude fluctuated around $106 a barrel. Investors have faced a difficult week for technology stocks alongside a renewed flight to Treasuries.
Concerns over the cost and sustainability of AI investment have dragged the Nasdaq 100 down 3% since Monday, while elevated energy prices continue to fuel inflation pressures and increase the risk of further monetary tightening by central banks. Federal Reserve Chair Kevin Warsh offered no guidance on near-term policy during a discussion at the International Monetary Fund’s annual meetings. Traders subsequently reduced the implied probability of an October rate hike to around 15%, reversing some of the repricing triggered by this week’s stronger-than-expected inflation data.