Stocks Drop Ahead Of Awaited US Price Data – Europe Market Wrap
US stocks were set to deepen losses as traders grappled with an increasingly softening outlook for interest-rate cuts and the threat of an American government shutdown.
The S&P 500 was heading for its biggest weekly drop since at least September as futures tied to the benchmark dipped 0.9%. Nasdaq 100 contracts fell 1.4%, with technology stalwarts such as Tesla and NVIDIA giving way in early trading. Europe’s Stoxx 600 weakened 1.7%.
Stock market volatility has spiked in recent days as a hawkish pivot by the Federal Reserve made traders question whether this year’s tech-fueled rally could extend further in a higher rates environment, despite a resilient US economy.
Oil declined for a second day to extend a weekly fall, as a strengthening US dollar pressured prices. Gold advanced.
