Earnings Increase, Stocks Remain Close to Record Highs – Europe Market Wrap
US stocks hovered near a record as investors turned their focus to corporate earnings after weeks of choppy trading spurred by concerns over tech valuations and the conflict in the Middle East.
S&P 500 futures climbed 0.2%, signaling Wall Street is set to build on a tech-led rally that lifted the index within striking distance of an all-time high. Contracts on the Nasdaq 100 climbed 0.8%. Palantir jumped 16% in premarket trading after raising its forecasts, while industrial bellwether Caterpillar soared 9% on an earnings beat. SpaceX and AMD are still due to report today.
The rebound in US tech shares followed a volatile month as investors questioned whether billions of Dollars of AI spending will translate into stronger growth and profits, but the positive earnings season so far has eased some of those concerns. S&P 500 companies are beating expectations at a rate of 86%, the highest in five years, while year-on-year growth in earnings per share is running at 29%.
The Stoxx Europe 600 rose 0.4%, set for a record-high close, with Bayer and BP rising after earnings beats. Zalando plunged 16% after cutting full-year guidance, while Lufthansa fell after warning of uncertainty due to volatile jet fuel prices.
The Yen gave back some of its recent advance that was triggered by US and Japanese intervention, slipping 0.3% to 157.70 per Dollar, while a gauge of Dollar strength was little changed.
