Global Stocks Rise as Brent Slide Below $90 Lifts Bonds – Europe Market Wrap
Global equities advanced as chipmakers rebounded and falling bond yields added support after Brent crude slid below $90 a barrel. S&P 500 futures climbed 0.4%, while contracts on the Nasdaq 100 rose 0.9%. Nvidia was poised to snap its longest losing streak since 2022. Gold ended a four-day run of gains, while the Dollar held steady. The yield on 10-year Treasuries fell 3 bps.
Brent oil dropped to its lowest level in a week. The New York Times reported the US is preparing to send diplomats back to embassies in the Middle East, a move suggesting Washington does not anticipate a renewal of full-scale conflict with Iran, easing a source of pressure on energy prices and the inflation outlook.
Tech shares stayed in focus, with chip stocks firming ahead of earnings from Nvidia, long a bellwether for the AI trade and, more recently, a key player in arranging funding for projects across the technology’s ecosystem. Bitcoin briefly broke above $80,000 before paring the advance, as the cryptocurrency continues to benefit from a return of optimism following Bessent’s intervention in the bond market last week, which fueled demand for Dollar alternatives.
Traders are also watching for the US Treasury’s next moves, with long-dated yields still trading near multi-decade highs. A slate of economic data and a speech from Fed Chair Warsh at the end of the week will further shape the direction for bonds and rate expectations.
The Nvidia print remains the pivotal event ahead, with its reception likely to set the tone for the AI trade and risk appetite more broadly, while Warsh’s speech and the coming data will sharpen the picture on rates into next week.
