US Stock Rebound Falters & AI Spending Concerns Return - Europe Market Wrap
US stock futures struggled to sustain a rebound on Tuesday as renewed concerns over AI spending weighed on sentiment following a disappointing debut for South Korean data centre firm Elice. S&P 500 futures fluctuated between gains and losses, while Nasdaq 100 futures fell 0.4%, stalling a day-long recovery. Elice plunged 32% in Seoul on its first trading day, raising doubts over whether the tech spending boom can continue. Treasuries attracted fresh haven demand, with 10-year yields falling 2 bps to 5.12%. Brent crude climbed above $111 a barrel for the first time since May as traders assessed the risk of further Iranian attacks in the Strait of Hormuz. The Dollar slipped 0.1%, while SoftBank's credit risk rose to its highest level in nearly four years, reflecting growing concerns over AI funding following the abandoned IPO of Australia's Firmus Grid. Investors are awaiting earnings from major AI spenders for further clarity on the sustainability and pace of infrastructure investment. SpaceX is expected to report after Tuesday's close, followed by Meta Platforms. Netflix earnings will also be closely watched for signs that its film and TV strategy can support a turnaround in its $1
US stock futures struggled to sustain a rebound on Tuesday as renewed concerns over AI spending weighed on sentiment following a disappointing debut for South Korean data centre firm Elice. S&P 500 futures fluctuated between gains and losses, while Nasdaq 100 futures fell 0.4%, stalling a day-long recovery. Elice plunged 32% in Seoul on its first trading day, raising doubts over whether the tech spending boom can continue. Treasuries attracted fresh haven demand, with 10-year yields falling 2 bps to 5.12%.
Brent crude climbed above $111 a barrel for the first time since May as traders assessed the risk of further Iranian attacks in the Strait of Hormuz. The Dollar slipped 0.1%, while SoftBank's credit risk rose to its highest level in nearly four years, reflecting growing concerns over AI funding following the abandoned IPO of Australia's Firmus Grid. Investors are awaiting earnings from major AI spenders for further clarity on the sustainability and pace of infrastructure investment. SpaceX is expected to report after Tuesday's close, followed by Meta Platforms.
Netflix earnings will also be closely watched for signs that its film and TV strategy can support a turnaround in its $135 billion market valuation. Risk aversion extended across global markets, with MSCI's Asian benchmark falling to its lowest level since July. South Korea's Kospi dropped 3.7%, while US chipmakers were positioned to extend their declines. In Europe, the Stoxx 600 slipped 0.6%, led by losses in industrial goods and services alongside mining stocks.