US Stocks Set for Bounce Following Four-Day Loss – Europe Market Wrap

US market futures gained on confidence about technology firms, indicating that Wall Street is poised to recover from the four-day swoon that ended 2024.

Nasdaq 100 contracts rose 0.8%, while S&P 500 contracts rose 0.6%. European energy stocks responded well following a strong surge in natural gas prices. The Euro hit its lowest level versus the Dollar in more than two years. Treasuries and European government bonds rose. Bitcoin extended its surge for a third day.

US markets are hoping to end a losing streak that has tarnished the S&P 500’s finest two-year run since the late 1990s. The index has risen by more than 50% since the beginning of 2023, driven by the so-called Magnificent Seven tech megacaps and optimism about the boost to profits from AI.

European petrol prices have risen to their highest level since October 2023, as the area prepares for harsh winter conditions without Russian supplies transported via Ukraine. A transit contract between the two warring nations expired on New Year’s Day, leaving no replacement in place.

The Euro’s decline against the Dollar underscores concerns about European growth and monetary policy divergence with the United States. There are concerns that export-oriented European economies may be damaged by US trade tariffs, and ECB is expected to slash interest rates more aggressively than the Fed. Many experts predict a drop to parity with the Dollar or perhaps below this year.