(Bloomberg) — European stocks rose slightly and U.S. stock futures pared losses as investors gauged Nvidia Inc.’s performance ahead of key economic data due this week.
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The Stoxx Europe 600 index rose 0.3%, led by technology stocks. Nasdaq 100 futures fell 0.1% after the index fell more than 1% on Wednesday. S&P 500 futures were little changed. Nvidia fell more than 8% in after-market trading.
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Nvidia’s disappointing sales outlook threatens to dampen the AI boom that has driven global tech stocks for much of this year. But even as the guidance was disappointing, second-quarter sales more than doubled to $30 billion, suggesting demand remains strong.
With earnings season officially over, the focus turns again to macroeconomic conditions, with the Federal Reserve’s preferred inflation gauge due for release on Thursday likely to help shape views on how much and how quickly the central bank will ease monetary policy.
“It’s important to remember that not all semiconductor companies have the same exposure to AI trends as Nvidia. Some have significant exposure to mobile, auto and industrial,” said Gael Combes, head of equities at Bancise & Co. “An economic slowdown is a risk.”
The 10-year Treasury yield was flat after rising one basis point to 3.84% in the previous trading session, while the dollar edged down after a broad rally on speculation that investors were buying greenbacks to rebalance their portfolios.
Investors are weighing the prospects of a U.S. interest rate cut, with Atlanta Fed President Raphael Bostic saying “it may be time for a rate cut” but still seeking more data to support a cut next month.
In commodities, crude oil stabilized after two days of declines as lower stock prices offset drawdowns in U.S. stockpiles and supply disruptions in Libya. Gold traded just below its all-time high and is on track for a monthly gain.
Major events this week:
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Eurozone consumer confidence on Thursday
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US GDP, initial jobless claims Thursday
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Federal Reserve President Raphael Bostic to speak Thursday
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Japan unemployment rate, Tokyo consumer price index, industrial production, retail sales, Friday
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Eurozone CPI, unemployment rate on Friday
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US Personal Income, Spending, PCE, Consumer Confidence Friday
Some of the key market developments:
stock
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The Stoxx Europe 600 index was up 0.3% as of 8:26 a.m. London time.
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S&P 500 futures little changed
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Nasdaq 100 futures fell 0.2%
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Dow Jones Industrial Average futures up 0.4%
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The MSCI Asia Pacific Index fell 0.1%
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The MSCI Emerging Markets Index fell 0.2%.
currency
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The Bloomberg Dollar Spot Index fell 0.2%.
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The euro was little changed at $1.1127
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The Japanese yen was almost unchanged at 144.68 yen to the dollar.
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The offshore yuan rose 0.3% to 7.1088 yuan per dollar.
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The British pound rose 0.2% to $1.3222.
Cryptocurrency
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Bitcoin rose 0.4% to $59,571.01.
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Ether rose 0.4% to $2,547.13.
Bonds
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The yield on the 10-year Treasury note was little changed at 3.84%.
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German 10-year government bond yields rose 2 basis points to 2.28%.
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UK 10-year government bond yields rose 1 basis point to 4.01%.
merchandise
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Brent crude was little changed
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Spot gold rose 0.5% to $2,517.73 an ounce.
This story was produced with assistance from Bloomberg Automation.
–With assistance from Abhishek Vishnoi and Winnie Hsu.
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