US Futures Increase in a Mild Response to Biden’s Departure – Europe Market Wrap
US IT markets were poised to rebound from their worst week since April, as investors looked past Joe Biden’s presidential re-election campaign and concentrated on earnings.
The market reaction to Biden’s decision to pull out of the race and back Kamala Harris has been rather mild, with a gauge of dollar strength falling 0.2% and the 10-year Treasury rate falling a basis point. Just weeks before their convention, Democrats must rally around a new nominee and quickly gain ground on Republican frontrunner Donald Trump.
Investors have been betting on Trump’s return to the White House for weeks, reducing holdings of long-term US bonds and purchasing Bitcoin, among other things. Now, they are examining if the Trump Trade is still on.
The Nasdaq 100 futures contracts rose 0.7%, indicating a minor recovery from last week’s 4% drop. S&P contracts rose 0.5%. Europe’s Stoxx 600 index gained 1%, halting a five-day losing trend.
