As Traders Await Iran Deal & Jobs Data, Stocks Wander – Europe Market Wrap

Stocks struggled for direction amid weakness in the tech sector, with investors awaiting developments in US-Iran talks and looking ahead to Friday’s key US jobs report.

S&P 500 futures inched up 0.2%, while Nasdaq 100 contracts slipped 0.3%. Sandisk slid 9% in pre-market trading, and rival Western Digital plunged 15% after both companies reported earnings, while AppLovin slumped 16% after missing analysts’ revenue estimates. Attention is also on the $101 billion of SpaceX shares becoming available for trading Thursday, with the shares edging higher in pre-market trading after the company’s first quarterly earnings report since its listing triggered a 14% slide.

The pause in the tech-led rally comes as investors reassess valuations after AI-related shares rebounded from last month’s selloff. Traders are also focused on Friday’s US non-farm payrolls data, which is expected to show a strengthening jobs market, as they look for clues to the Fed’s policy path.

Brent crude held at around $80 a barrel after Iran said it reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, raising the prospect of energy flows resuming through the critical waterway. But a lasting US-Iran deal that would help ease inflation and upward pressure on Treasury yields remains elusive, with Trump saying he would “see what happens” in ongoing negotiations.

The Stoxx Europe 600 rose 0.4% as the earnings season draws to a close. Deutsche Telekom, Europe’s biggest phone carrier, jumped more than 5% after raising its share buyback program, and Diageo soared more than 11% after the British distiller forecast a return to growth, while Siemens plunged after disappointing investors with a muted outlook raise. Germany’s DAX edged higher after factory orders rose by more than analysts forecast in June, another sign that a long-awaited recovery in Europe’s biggest economy may finally be taking hold.