Markets Lose Momentum as Tech Valuation Worries Resurface – Europe Market Wrap
Stocks wavered on Thursday as earlier optimism from bargain hunters faded, with strong corporate results doing little to offset lingering anxiety over steep valuations in the technology sector. Meanwhile, US Treasuries advanced after a string of weak labor data reignited expectations for a rate cut.
Futures for the S&P 500 and Nasdaq 100 hovered near the flat line, showing little conviction after Wednesday’s modest recovery. Sentiment remained cautious following lackluster reactions to solid chipmaker forecasts. Qualcomm, the leading producer of smartphone processors, became the latest to disappoint investors despite upbeat guidance, slipping 2.5% in premarket trading.
Among the so-called Magnificent Seven, performance was uneven. Tesla edged 0.5% higher ahead of the shareholder vote that could grant Elon Musk a compensation package approaching $1 trillion. Other megacaps fluctuated between small gains and losses.
In the bond market, Treasuries rebounded after data showed US firms announced the highest number of job cuts for any October in more than two decades. The report prompted traders to increase wagers on a potential Federal Reserve rate reduction next month. The dollar weakened for a third session, heading for its largest weekly drop in nearly a month.
