Stocks Gain Relief as Brent Slips Below $100 – Europe Market Wrap
US stocks are finding some respite after posting their biggest drop this month as Brent crude eased below $100 a barrel and bond yields halted their ascent.
S&P 500 futures rose 0.2%, with the index still on track for its first back-to-back weekly loss since the early stages of the war in the Middle East. While Intel rallied following a blowout revenue forecast, most chipmakers fell in premarket trading. Megacaps edged higher after Thursday’s selloff.
After a risk-driven rally that drove Brent crude to the highest level since May, prices pulled back below $98 a barrel. Treasury yields retreated from this year’s peaks. The dollar fell 0.2%, while gold rose modestly.
Risk appetite remained subdued after a week in which markets were rattled by the war in Iran and fresh concerns over whether massive investments in AI will pay off. The focus is now shifting to a weekend that could bring further escalation in the Middle East, ahead of a stack of earnings from AI hyperscalers and central bank decisions.
In Europe, the Stoxx 600 climbed 0.5%, led by gains in software stocks after SAP reported better-than-expected sales for cloud products. Bonds across the region staged a modest rebound after days of losses.
Sentiment got a boost from a bigger-than-expected improvement in private-sector activity in the Euro area and UK in July. Still, the latest tension in the Middle East could once again scupper the optimism.
