Stocks Fall Before CPI, Tech Selloff Eases – Europe Market Wrap

Stocks fell as traders shifted their focus to vital US inflation data, as a selloff fuelled by AI concerns faded.

Futures for the S&P 500 and Nasdaq 100 fell 0.4% as the largest technology firms traded mixed. Europe’s Stoxx 600 index fell 0.4%. Treasuries reversed some of their gains from Thursday, with the benchmark 10-year yield rising 2 bps to 4.11%. Gold and silver have recovered from their recent drop.

Meanwhile, investors will be eyeing Friday’s January inflation report to see if it supports the good jobs statistics from earlier in the week, which caused traders to reduce bets on Fed interest rate reduction. The median projection forecasts a 2.5% year-over-year increase in the core consumer price index.

Thursday’s losses reversed the S&P 500’s year-to-date gains, resulting in a 0.2% decline. The Nasdaq 100 Index has fallen 2.2% year to date. In comparison, the MSCI Asia Pacific Index is up around 13% this year, following advances in each of the previous three years.

Chinese stocks fell as investors reduced risks ahead of the Lunar New Year vacations on the mainland and in Hong Kong.