Futures Steady as Tech Pullback Eases, Target Tumbles – Europe Market Wrap
US stock futures steadied after a three-day retreat that was driven by a pullback in big technology. Target and Estee Lauder shares fell.
S&P 500 futures was little changed. Target dropped more than 9% in premarket after picking an insider as chief executive officer to help regain its footing. Estee Lauder fell 7%. Nvidia steadied after Tuesday’s slump, even as most members of the Magnificent Seven extended declines. In Europe, the stock benchmark edged 0.2% closer toward a new high after erasing losses. The dollar and US Treasuries were little changed, with the 10-year rate at 4.30%. Brent crude rose more than 1% to $66.50 a barrel.
Investors pared back positions in tech amid growing concern that the S&P 500’s recent record-breaking rally has run too far, too fast and has leaned heavily on a few growth leaders. That momentum will get a further test this week as focus turns to Jackson Hole, Wyoming, where Federal Reserve Chair Jerome Powell is set to speak on Friday with traders betting on a September cut in interest rates.
In the UK, money markets kept wagers on Bank of England interest- rate cuts broadly steady, seeing around a 40% chance of another reduction by year-end after inflation climbed for a second month in July. A full quarter-point cut had been expected earlier this month. Gilts rose, with the two-year yield falling four basis points at 3.93%. The pound fluctuated.
