Stocks Gain Ahead of Tech Earnings & Oil Retreats - Europe Market Wrap
Stocks advanced at the start of the week as oil prices retreated from six-month highs and investors awaited major tech earnings for further insight into the AI trade. S&P 500 and Nasdaq 100 futures both rose 0.3%, following two consecutive weekly losses that pushed US semiconductor stocks to a three-month low. Europe's Stoxx 600 gained 0.5%, while France's CAC 40 climbed 0.9% as French bonds rallied after the country avoided a credit-rating downgrade. Brent crude fell 2% to below $115 a barrel as Iran prepared to host senior security and defense officials from Saudi Arabia, Pakistan and Turkey for regional talks. Trump said it was approaching decision time on whether to reach an agreement with Tehran or take military action. The decline in oil provided some relief to markets concerned about inflation, although elevated energy costs and global bond yields continued to weigh on the outlook. AI investment spending will face renewed scrutiny as Alphabet, Microsoft and Amazon report earnings this week, with investors assessing whether growing revenues justify the scale of infrastructure investment. In Asia, chipmakers SK Hynix and Samsung are also due to report. Meanwhile, the Fed, ECB
Stocks advanced at the start of the week as oil prices retreated from six-month highs and investors awaited major tech earnings for further insight into the AI trade. S&P 500 and Nasdaq 100 futures both rose 0.3%, following two consecutive weekly losses that pushed US semiconductor stocks to a three-month low. Europe's Stoxx 600 gained 0.5%, while France's CAC 40 climbed 0.9% as French bonds rallied after the country avoided a credit-rating downgrade. Brent crude fell 2% to below $115 a barrel as Iran prepared to host senior security and defense officials from Saudi Arabia, Pakistan and Turkey for regional talks.
Trump said it was approaching decision time on whether to reach an agreement with Tehran or take military action. The decline in oil provided some relief to markets concerned about inflation, although elevated energy costs and global bond yields continued to weigh on the outlook. AI investment spending will face renewed scrutiny as Alphabet, Microsoft and Amazon report earnings this week, with investors assessing whether growing revenues justify the scale of infrastructure investment. In Asia, chipmakers SK Hynix and Samsung are also due to report.
Meanwhile, the Fed, ECB and BoJ are set to announce policy decisions as officials contend with persistent inflation, higher energy prices and elevated borrowing costs. French government bonds rallied after Moody's maintained the country's A3 credit rating, seven levels above junk, despite a negative outlook. France's 10-year yield fell seven bps, narrowing its spread over equivalent German debt after recent political unrest and fiscal concerns. French yields had risen more than those of any other developed economy this month through Friday, reaching their highest level in 24 years as investors questioned the government's ability to contain its growing debt burden.