As Traders Lock in Profits, Tech Drives Stocks Lower – Europe Market Wrap
Tech stocks drove down US futures as traders grabbed profits following a robust run in the AI trade. Defence stocks soared as Trump signalled plans to increase military spending.
The Nasdaq 100 was expected to open 0.3% lower, capping a three-day rally. Intel fell in premarket trade following a 15% gain in 2026. Nvidia bucked the trend, surging on signals that China may allow the company to import its H200 chips.
S&P 500 futures were down 0.2%. Defence stocks soared as Trump announced plans to increase US military spending to $1.5 trillion next year, sending Lockheed Martin and RTX up more than 4%.
The surge in global bonds has paused. Treasuries were marginally softer, with the 10-year yield climbing one basis point after US company layoffs reached a 17-month low in December. Precious metals plummeted, with silver approaching $75 per ounce and gold falling to $4,400 per ounce. Brent crude remained above $60 per barrel.
Meanwhile, firms and governments in the US, Europe, and Asia have borrowed over $260 billion across currencies this year, the largest total on record for the same period, according to statistics. A new round of bond offerings by Asian debtors began on Thursday, and the number is expected to rise further.
