Stocks Maintain Losses as Concerns Exceed AI Froth – Europe Market Wrap

A wave of earnings failures and concerns about US economic growth are pushing losses across global markets, adding gasoline to a selloff that began with traders exiting megacap tech.

US stock futures indicated to further losses. The Europe Stoxx 600 fell 1.5% as Nestle and Gucci owner Kering said that consumers are lowering spending on everything from food to luxury handbags. Ford Motor Company’s stock fell in premarket trade after missing earnings

Traders have also begun to increase their bets that the Fed would need to lower interest rates sooner than expected to keep the US economy afloat. The yield on two-year Treasuries fell seven basis points to 4.35%. The Yen rose more than 1% on expectations that the rate gap between Japan and the United States will narrow.

The US will announce figures on GDP and initial unemployment claims later today. Concerns about the economy escalated on Wednesday after former New York Fed President William Dudley urged for lower borrowing prices, preferably at next week’s meeting. Some observers are concerned that such a move would signal that government are hurrying to prevent a recession.