S&P 500 and Nasdaq futures decline ahead of Wall Street open amid big tech volatility and softer inflation expectations.
European equities retreated as big tech weakness spilled over from Wall Street, with S&P 500 futures down 0.5% and Nasdaq futures off 1.2%. The DAX and CAC 40 fell 1.2% and 0.8%, respectively, as traders awaited U.S. market reaction to yesterday’s AI-driven selloff.
WTI crude extended losses, dropping 3% to $69.70 amid easing geopolitical tensions in the Strait of Hormuz. The ECB’s latest survey showed inflation expectations declining and growth outlook improving, while U.S. 10-year yields dipped 1 bps to 4.38%. Gold rose 0.6% to $4,050, and EUR outperformed AUD on the session.
Mild dollar buying is expected into month-end, though USD weakness persisted as EUR/USD tested key levels. Markets remain cautious ahead of further developments on Iran’s nuclear talks, though oil prices reflect subdued risk premiums.