As Tech Retreats, Stocks Stall Close to Record Highs – Europe Market Wrap
Stocks paused on Thursday, after a three-day rise that had brought US and European stocks within striking distance of all-time highs.
US equity futures fell after the S&P 500 finished on the verge of a record high, boosted by confidence about AI and a slew of earnings from business giants. Contracts on the Nasdaq 100 declined 0.5%, while those on the S&P 500 fell 0.1%.
As investors reflected on Trump’s first few days in office, Wall Street’s rise began to fade. While his decision to increase AI expenditure boosted tech megacaps on Wednesday, the threat of tariffs on major trading partners continues to weigh on mood. The S&P 500 index has risen by nearly 5% since Trump’s election victory on November 6th.
The yield on 10-year Treasuries increased 2 bps to 4.63%. The Dollar index remained stable.
The Europe Stoxx 600 index changed little after reaching within a miniscule distance of an all-time high on Wednesday. Tech stocks lost more than 1%, giving up the majority of their previous day’s gains as they lagged every other industry group in the index.
[06:30 ET] UK’s Chancellor Reeves: If necessary, I will announce new fiscal measures on March 26th.