US Futures Slip as Midterm Vote Adds to Market Caution - Europe Market Wrap
US stock futures slipped as investors remained cautious with voting underway in the midterm elections, adding political uncertainty to a market already grappling with geopolitical risks and a sharp pullback in the artificial-intelligence trade. S&P 500 futures fell 0.2%, while Nasdaq 100 contracts were little changed, pointing to a steadier open after the index entered a technical correction. Palantir Technologies dropped more than 8% in early trading after issuing underwhelming guidance, while Apple fell 3.9% on pressure from tighter margins. Brent crude traded around $106.50 a barrel as investors assessed the prospects for a US-Iran peace deal. Treasuries edged lower ahead of the latest US job openings report, the first in a series of employment releases this week. The dollar held steady, while gold resumed its decline, trading near $3,900 an ounce. The midterms will determine control of Congress, adding another source of uncertainty for investors already reassessing technology valuations. The AI trade has come under renewed pressure, with major technology companies increasingly turning to bond markets to finance investment. Some of the world’s largest asset managers have warned
US stock futures slipped as investors remained cautious with voting underway in the midterm elections, adding political uncertainty to a market already grappling with geopolitical risks and a sharp pullback in the artificial-intelligence trade. S&P 500 futures fell 0.2%, while Nasdaq 100 contracts were little changed, pointing to a steadier open after the index entered a technical correction. Palantir Technologies dropped more than 8% in early trading after issuing underwhelming guidance, while Apple fell 3.9% on pressure from tighter margins. Brent crude traded around $106.50 a barrel as investors assessed the prospects for a US-Iran peace deal.
Treasuries edged lower ahead of the latest US job openings report, the first in a series of employment releases this week. The dollar held steady, while gold resumed its decline, trading near $3,900 an ounce. The midterms will determine control of Congress, adding another source of uncertainty for investors already reassessing technology valuations. The AI trade has come under renewed pressure, with major technology companies increasingly turning to bond markets to finance investment.
Some of the world’s largest asset managers have warned that the sector’s rapid expansion risks creating a bubble followed by a downturn. European and Asian equities also weakened. The Stoxx 600 fell 0.5%, catching up with losses on Wall Street after European markets closed on Monday, while MSCI’s Asia-Pacific index dropped 1.2%. South Korea’s technology-heavy Kospi slid more than 3%.
US-listed semiconductor stocks showed tentative signs of stabilisation after a brutal selloff. The sector gauge hit a six-month low on Monday, having fallen nearly 30% from its June peak. An exchange-traded fund tracking chipmakers rebounded 1.5% in early trading on Tuesday, offering some relief after the sector’s steep losses.