Markets Turn Lower as Geopolitical Risks Resurface – Europe market Wrap
A recovery in US equities lost momentum as rising concerns over a potential confrontation between Washington and Tehran damped investor sentiment. Oil prices continued to climb.
S&P 500 futures erased earlier advances to decline 0.3%, slipping further after the head of the United Nations nuclear agency cautioned that Iran’s opportunity to secure a diplomatic agreement on its nuclear program is narrowing. Brent crude moved above $71 a barrel, while West Texas Intermediate hovered near $66.
Nasdaq 100 contracts dropped 0.4% as technology shares faced renewed selling pressure. Most of the so-called Magnificent Seven weakened in premarket trading, and an exchange-traded fund tracking software companies also pulled back. Gold surrendered a move above $5,000 an ounce. Treasuries extended losses, while the dollar traded little changed.
Geopolitical risk in the Middle East has added another layer of uncertainty for markets already unsettled by sharp swings in technology stocks in recent weeks. Investors remain cautious about the durability of the S&P 500’s primary growth engine of the past three years, amid concerns that artificial intelligence could reshape industries and that elevated capital expenditures may not deliver the expected returns.
In Europe, equities retreated from record levels during a busy earnings session, with Airbus sliding 7% after issuing weaker-than-anticipated delivery guidance.
