Amazon and Intel Slump as Investors Flee Tech - Europe Market Wrap
US stock futures fell for a second consecutive session as another batch of disappointing technology earnings deepened the sector selloff. Investors are increasingly questioning whether massive artificial-intelligence investments will deliver sufficient returns, while signs of slowing momentum in the core businesses of major US technology companies add to concerns. Crude oil advanced. Nasdaq 100 futures sank 2.4% after results from Amazon and Intel raised fresh questions about capital expenditure, while S&P 500 contracts fell 1.1%. Amazon dropped 7% in US premarket trading and Intel plunged 26%. Bitcoin slid 1.6%, heading for a six-week low after Binance suspended deposits and withdrawals while investigating a suspected hack. Crypto-linked shares, including Strategy, also declined. Brent crude rose 2.3% to around $117.57 a barrel as concerns that the US could resume military strikes against Iran raised the risk of further regional disruption and damage to energy flows. Gold fell below $4,000 an ounce, while silver slipped 1.7% and was on course for its weakest close since November. The deterioration in risk appetite drove demand for haven assets, with the Swiss franc among the stron
US stock futures fell for a second consecutive session as another batch of disappointing technology earnings deepened the sector selloff. Investors are increasingly questioning whether massive artificial-intelligence investments will deliver sufficient returns, while signs of slowing momentum in the core businesses of major US technology companies add to concerns. Crude oil advanced. Nasdaq 100 futures sank 2.4% after results from Amazon and Intel raised fresh questions about capital expenditure, while S&P 500 contracts fell 1.1%.
Amazon dropped 7% in US premarket trading and Intel plunged 26%. Bitcoin slid 1.6%, heading for a six-week low after Binance suspended deposits and withdrawals while investigating a suspected hack. Crypto-linked shares, including Strategy, also declined. Brent crude rose 2.3% to around $117.57 a barrel as concerns that the US could resume military strikes against Iran raised the risk of further regional disruption and damage to energy flows.
Gold fell below $4,000 an ounce, while silver slipped 1.7% and was on course for its weakest close since November. The deterioration in risk appetite drove demand for haven assets, with the Swiss franc among the strongest G-10 currencies against the dollar and government bonds extending gains. Treasury yields fell at least one basis point across the curve, adding to declines from the New York session, while German bonds tracked the move. Benchmark Treasury yields have dropped almost 40 basis points in October, putting them on course for their first monthly decline since February.
The yen also strengthened after the Bank of Japan left policy unchanged, as expected. French debt bucked the broader bond rally after data showed the euro area’s second-largest economy unexpectedly contracted in the third quarter. Elsewhere in Europe, the Stoxx 600 slipped 0.3%, holding its decline despite figures showing euro-area growth exceeded expectations. Basic resources and technology stocks fell more than 2%, while AstraZeneca and Sanofi advanced after beating profit estimates.