Tech Boosts US Stock Futures Following Holiday Break – Europe Market Wrap
Stocks were set to begin the week on a firmer footing, with Nasdaq 100 futures rising 1% and S&P 500 futures adding 0.4% following the US holiday. The rebound comes ahead of a key week for the AI trade as Samsung Electronics and SK Hynix prepare to deliver updates that will test whether semiconductor fundamentals continue to justify the sector’s strong rally.
European equities slipped, with the Stoxx 600 falling 0.3% from a record high, while Asian markets traded mixed. Samsung will be closely watched when it reports earnings on Tuesday after rallying 165% YTD, with attention then turning to SK Hynix’s planned $29B US listing later in the week.
The semiconductor updates take on added significance in an otherwise quiet week for economic data, with the US earnings season yet to begin. Investors continue to debate whether the AI-driven rally has run ahead of fundamentals and whether heavy capital spending on AI infrastructure will generate the expected returns.
Brent crude fell around 0.5% to $71.77/bbl as shipping through the Strait of Hormuz remained steady and OPEC+ signaled higher supplies next month. Treasuries strengthened across the curve, with the 10Y yield falling 2 bps to 4.46%.
The Yen weakened against all major peers as traders continued to test the resolve of Japanese authorities to intervene in FX markets. Goldman Sachs joined a growing number of strategists turning more bearish on the Yen, which remains near its weakest level since 1986.
