Stocks Swing on Tech Earnings as Yen Jumps and Oil Volatile – Europe Market Wrap
Stocks moved unevenly as investors worked through a wave of earnings reports, including results from four of the “Magnificent Seven” technology heavyweights. The yen jumped sharply after Japanese officials increased verbal support for the currency.
Nasdaq 100 futures edged higher as Alphabet surged more than 7% in premarket trading after beating expectations, while Amazon also gained following its results. Microsoft declined as growth in its cloud business disappointed lofty forecasts. Meta fell on concerns about its spending outlook.
Equities turned higher after Brent crude reversed an earlier surge of as much as 7.1%, which had briefly pushed prices above $126 a barrel. A report said President Donald Trump was set to receive a briefing on potential military action in Iran, clouding hopes for a near-term peace deal.
From sharp moves in oil to a split Federal Reserve holding rates steady and mixed megacap earnings, markets are being driven by rapid shifts in sentiment. The volatility is testing a global rally that has erased losses tied to the conflict and lifted US stocks to fresh highs, as investors continue to look for signs of de-escalation.
Japan’s currency strengthened as much as 1.6% to 157.85 per dollar, its strongest level since mid-April, after senior officials signaled that more decisive action could be approaching. Treasuries rebounded after the prior session’s decline, when higher oil prices and a firmer tone from the Fed pushed bond yields up.
In Europe, the Stoxx 600 also moved higher on another busy day of earnings, with traders preparing for upcoming rate decisions from the European Central Bank and the Bank of England. Both are widely expected to leave rates unchanged, with attention centered on how policymakers assess inflation risks linked to the Middle East conflict.
