US Stock Futures Slide With Rate-Cut Path at Risk – Europe Market Wrap

Following Monday’s selloff, US stock futures fell while Treasuries remained stable as traders made predictions about the direction of US interest rates.

The S&P 500’s contracts fell, signalling the gauge’s first consecutive loss in around 30 sessions. Following an 11 basis-point spike at the beginning of the week, the yield on 10-year Treasuries increased by one basis point to 4.21%.

Following recent strong economic statistics, central bank officials expressed a preference for lowering rates more gradually, which has caused investors to decrease their expectations for rate cuts. Given that Donald Trump has pledged tax cuts and trade tariffs, which may ultimately result in higher rates, the inflationary impact of a potential Trump victory is also being considered.

With traders’ attention on the Middle East war and the impending US elections, gold surged, nearly reaching its record high on Monday.