Stock Rally Pauses as Investors Weigh AI Optimism and War Risks – Europe Market Wrap
A rally in US stocks paused after the artificial intelligence trade helped drive the S&P 500 to its longest winning streak in more than a year, with investors assessing the prospects for an end to the conflict in the Middle East.
Futures for the benchmark index slipped 0.1% following an eight-session advance. Technology shares continued to support markets in Europe and Asia. Marvell Technology surged 27% in premarket trading after Nvidia’s Jensen Huang said the chipmaker could become the “next trillion-dollar company.”
Brent crude eased after posting its biggest gain in roughly a month, falling 1% to trade near $94 a barrel. President Donald Trump said he remains optimistic that the US can secure an interim peace agreement with Iran “over the next week,” despite Tehran threatening to suspend negotiations because of escalating Israeli attacks in Lebanon.
Investors are balancing intense enthusiasm around the economic promise of artificial intelligence with a conflict that has caused major disruptions to global oil markets. Uncertainty surrounding negotiations means traders must consider scenarios ranging from a sharp decline in crude prices to a move toward multi-year highs.
In bond markets, Treasuries recovered modestly, with the 10-year yield falling two basis points to 4.43%. The dollar was little changed, while Bitcoin dropped below $70,000 for the first time in two months.
Japan’s 10-year bond yield fell 10 basis points after a government auction attracted solid demand. The yen traded around 159.70 per dollar as Finance Minister Satsuki Katayama reiterated that authorities stand ready to act in the foreign-exchange market if necessary.
