Stocks Rise on AI Earnings & Oil Gains - Europe Market Wrap
US stock futures advanced as strong SpaceX earnings revived confidence in AI investment following recent concerns over valuations and funding pressures. S&P 500 futures rose 0.2%, while Nasdaq 100 contracts gained 0.4%. SpaceX surged 9% in premarket trading after strong growth in its AI and satellite internet businesses drove earnings well above expectations. Netflix fell 6.3% following a disappointing forecast. AI optimism was further supported by reports that Anthropic may spend $750 billion on computing power in the coming years, easing concerns over the sustainability of AI investment. Super Micro Computer rallied 12% after preliminary quarterly results exceeded analysts' estimates. Investors now await earnings from Meta and Tesla on Wednesday for further indications of AI spending and demand. European stocks also advanced, with the Stoxx 600 gaining 0.5%, led by tech and real estate shares. However, sentiment remained pressured by elevated oil prices, rising bond yields and political uncertainty. The yield premium on French 10-year bonds over German peers reached a 15-year high, narrowing by 10 bps, while optimism toward European equities continued to fade amid inflation conce
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US stock futures advanced as strong SpaceX earnings revived confidence in AI investment following recent concerns over valuations and funding pressures. S&P 500 futures rose 0.2%, while Nasdaq 100 contracts gained 0.4%. SpaceX surged 9% in premarket trading after strong growth in its AI and satellite internet businesses drove earnings well above expectations. Netflix fell 6.3% following a disappointing forecast.
AI optimism was further supported by reports that Anthropic may spend $750 billion on computing power in the coming years, easing concerns over the sustainability of AI investment. Super Micro Computer rallied 12% after preliminary quarterly results exceeded analysts' estimates. Investors now await earnings from Meta and Tesla on Wednesday for further indications of AI spending and demand. European stocks also advanced, with the Stoxx 600 gaining 0.5%, led by tech and real estate shares.
However, sentiment remained pressured by elevated oil prices, rising bond yields and political uncertainty. The yield premium on French 10-year bonds over German peers reached a 15-year high, narrowing by 10 bps, while optimism toward European equities continued to fade amid inflation concerns. Brent crude climbed above $110 a barrel as attacks on vessels near the Strait of Hormuz threatened shipments and preliminary US data indicated declining stockpiles. Higher energy prices raised concerns over renewed inflation pressures, tempering broader market optimism.
Treasury yields edged higher, while the Dollar was little changed.