US Futures Rise on Fed Bets as Gold, Bitcoin Hit New Records – Europe Market Wrap

US stock futures advanced as investors wagered that a resilient economy and an increasingly accommodative Federal Reserve will keep fueling corporate earnings and the global boom in artificial intelligence spending.

S&P 500 contracts rose about 0.4%, extending last week’s more than 1% advance despite the ongoing US government shutdown, which continues to delay key economic releases. Nasdaq 100 futures climbed 0.6%, while 10-year Treasury yields ticked up roughly four basis points. A gauge of the dollar strengthened for a second session.

Technology shares led early gains. Advanced Micro Devices Inc. jumped after unveiling a partnership with OpenAI to develop AI infrastructure in a deal the chipmaker said could generate tens of billions in new revenue. Tesla Inc. edged higher after teasing a new product reveal, while Comerica Inc. surged as Fifth Third Bancorp agreed to acquire the lender in a $10.9 billion merger.

Analysts at Goldman Sachs Group Inc. said US firms are poised for a stronger-than-expected earnings season, arguing that robust economic momentum and a durable AI growth story have left profit forecasts overly conservative. The strategists, led by David Kostin, expect the so-called Magnificent Seven tech giants to once again outperform.

Recent private-sector indicators showed a cooling labor market and easing demand — enough to temper inflation concerns without threatening growth. That backdrop has left traders confident the Fed will deliver another quarter-point rate cut in October, even as the government shutdown clouds economic visibility.

Across the Atlantic, European equities slipped, with France’s CAC 40 plunging as much as 2.1% amid renewed political turmoil. The euro weakened and bond yields surged, with French banks Société Générale, Crédit Agricole, and BNP Paribas among the steepest decliners. Political uncertainty deepened after Prime Minister Sébastien Lecornu resigned — just a day after President Emmanuel Macron unveiled his new cabinet — highlighting the ongoing struggle to pass a budget through a divided parliament. The standoff over spending cuts and tax hikes to contain France’s deficit, the largest in the eurozone, has rattled investor confidence.

Meanwhile, the US government shutdown, which began Wednesday, continues to drive demand for haven assets in what traders are dubbing the “debasement trade.” Gold climbed beyond $3,900 an ounce, setting yet another record, while Bitcoin logged a new all-time high over the weekend.