US Futures Edge Higher as Tech Bulls Wade Back In – Europe Market Wrap
US market futures and Treasuries crept up Friday, following the previous day’s losses caused by anticipation that the Federal Reserve’s first interest rate decrease would be postponed until December.
Contracts for the S&P 500 and Nasdaq 100 indices increased by around 0.3%, led by premarket gains at Micron Technology, Microchip Technology, and Advanced Micro, all of which continue to profit from optimistic attitude towards artificial intelligence following Nvidia’s blockbuster earnings. Europe’s Stoxx 600 index fell 0.4%, catching up with Wednesday’s Wall Street decline, the largest this month.
The market mood darkened as stronger-than-expected US business activity data prompted traders to postpone rate cuts by a month.
Rate-sensitive Treasury two-year rates were barely off their three-week highs over 4.95% reached Thursday. Earlier this week, minutes from the Fed’s May meeting revealed that officials are not in a hurry to drop rates, with some even advocating for more restrictive policy.
