US Futures Decline as Chipmakers Face Pressure – Europe Market Wrap
S&P 500 futures fell as the US sought to limit China’s technical lead, causing broad drops in chipmaker equities. Bitcoin fell below $90,000.
Contracts on both the S&P 500 and the Nasdaq 100 hinted to another volatile session, as Nvidia fell in early trade. ASML and STMicroelectronics both dipped as Trump outlined additional measures to constrain China’s semiconductor industry and asked allies to do the same.
Uncertainty about how the new US administration’s policies would effect global economy and long-standing economic and political relationships has led investors to reduce risk and shift to safe havens such as Treasuries or gold. Trump signalled Monday that taxes on Mexican and Canadian products will be imposed.
Bonds soared, bringing the 10-year Treasury yield down six basis points to 4.34%. Bitcoin fell below $90,000, its lowest since mid-November, as investors pulled back from one of Trump’s most popular trades.
A highly monitored indicator of the attractiveness of German debt sank to its lowest level on record, reflecting predictions of more borrowing to cover large defence expenditures.
