Stocks Rise as AI Trade Faces Nvidia Earnings Test – Europe Market Wrap

The S&P 500 is poised for a monthly loss following a tumultuous February defined by twin fears of an artificial intelligence bubble and the technology’s disruptive potential. 10-year Treasury rates fell below 4%.

Futures on the US benchmark were 0.4% lower after Thursday’s chipmaker selloff reversed the week’s gains. Europe’s Stoxx 600 index was on course for its eighth consecutive monthly gain, the longest such record in more than a decade. MSCI’s Asia-Pacific index is poised for its strongest February on record.

The disruptive potential of AI has roiled US shares for weeks in what traders have nicknamed the “AI scare trade.” The technology bellwethers have also lost momentum after driving S&P 500 advances for years, causing investors to shift their focus to international markets and firms linked to broader economic growth.

Treasuries maintained their gains, with the 10-year note on track for its best month in a year after rates fell 25 bps in February to 3.99%. The Dollar was poised for a fourth consecutive monthly decline. Gold traded flat, with prices on track for a sixth straight monthly gain. Oil rose.

The cross-asset moves reflect persistent demand for safe havens in the face of Trump administration policy uncertainty, Middle Eastern tensions, and concerns about the resilience of US economic growth. Swap traders increased their bets on Fed interest rate cuts, with a July move now virtually completely priced after being temporarily trimmed back earlier this week.