Stocks Struggle for Direction as Energy Prices Rise – Europe Market Wrap

Investors are stepping in to buy recent declines in technology shares as markets prepare for earnings from four major firms in a key test of whether this month’s rally can continue.

Nasdaq 100 futures rose 0.3% after the index dropped more than 1% in the prior session. Alphabet, Microsoft, Amazon and Meta are all set to report after the close, with the group playing a major role in the four-week surge that has lifted US stocks to record levels. The tech sector also led gains across Europe and Asia.

Treasuries edged lower ahead of the Federal Reserve’s latest rate decision, which is expected to be Jerome Powell’s final meeting as chair. Brent crude climbed above $114 a barrel after the US indicated it would maintain a naval blockade of Iranian ports, keeping the Strait of Hormuz effectively shut.

In Europe, the Stoxx 600 slipped 0.4% as investors digested a mixed set of earnings. UBS rose 5% on strong trading results, while Deutsche Bank fell 3.2% after weakness tied to commercial real estate exposure. Adidas jumped 7.3% following stronger-than-expected sales.

The dollar was little changed, while gold declined 0.8% to around $4,560 an ounce. S&P 500 futures were flat. The 10-year Treasury yield rose two basis points to 4.36%, with a sharper selloff seen in European bonds as traders increased bets on rate hikes in 2026 from the European Central Bank and the Bank of England.

While the Fed is widely expected to keep rates unchanged for a third straight meeting, investors will be watching closely for signals on how long policymakers intend to stay on hold. Rising energy costs have increased the risk of higher inflation and slower growth, prompting markets to look for any changes in the central bank’s guidance.