As Brent Hits $95, Stocks Drop Ahead of Alphabet – Europe Market Wrap
US stock futures fell on Thursday as investors awaited Alphabet’s earnings for the clearest indication yet of whether massive AI spending by hyperscalers is translating into stronger returns. Nasdaq 100 futures dropped 0.6%, while S&P 500 futures slipped 0.2%, ending a two-day rebound in technology shares. In Europe, the technology sector lagged the broader market, while Asia’s tech-heavy indexes pared earlier gains.
Markets also remained under pressure from rising oil prices as tensions between the US and Iran continued to escalate. Brent crude briefly climbed above $95 a barrel before easing to around $94.50, extending its July rally to 29% as both countries signaled there were no immediate plans to resume negotiations.
Investors remain focused on whether elevated AI spending can justify lofty valuations after this year’s sharp gains in technology stocks. High expectations, combined with heavy market concentration in a handful of AI leaders, are likely to keep volatility elevated even as long-term optimism around the sector remains intact.
In Japan, the Yen strengthened slightly after reports that BoJ officials are open to raising interest rates more aggressively than economists had expected, as the currency’s prolonged weakness continues to fuel inflation risks.
Treasury yields held near two-month highs as higher oil prices reinforced inflation concerns. In Europe, UK government bonds outperformed after softer-than-expected inflation data reduced expectations for further rate hikes, while the Dollar and Pound traded little changed.
