Stock Rally Pauses Ahead of Fed and Big-Tech Earnings – Europe Market Wrap

The record-breaking stock run stalled as investors digested a flurry of company earnings, including highly anticipated data from US technology titans and a Fed policy decision around the corner.

Futures on the S&P 500 were unchanged after the gauge reached an all-time high as Chinese and US trade negotiators prepared a slew of diplomatic victories for Trump and Xi Jinping to announce at a conference this week.

Easing trade tensions have fuelled the stock rise, with US corporations remaining mainly unaffected by tariffs thus far. The S&P 500 is on track to have the most corporations reporting sales beats in approximately four years. That optimism will be tested this week as investors watch the Fed meeting for signs on the direction of rate cuts, while key technology businesses such as Meta and Microsoft reveal whether the AI-fueled earnings momentum can be sustained.

The Europe Stoxx 600 index retreated from a record finish, with basic resources stocks leading drops as crude oil, gold, and silver declined.

The Chinese Yuan rose to its highest level in over a year, fuelled by hopes for a China-US trade agreement. Gold remained below $4,000 per ounce as progress in trade talks reduced demand for haven assets.