US Futures Pare Gains as Big Earnings Week Starts: Markets Wrap

(Bloomberg) — US equity futures pulled back from their highs at the start of the week as investors looked ahead to earnings from Nvidia Corp. and the release of long-delayed economic data.

Futures on the S&P 500 struggled to hold on to gains following a volatile stretch for stocks. The advance in Nasdaq 100 contracts was stronger, with Alphabet Inc. climbing 5.5% in premarket trading after Berkshire Hathaway Inc. disclosed a $4.9 billion stake. Bitcoin rebounded after erasing its year-to-date gains. Treasuries strengthened across the curve, while the dollar edged higher.

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While artificial-intelligence bellwether Nvidia is scheduled to report on Wednesday, earnings from Target Corp. and Walmart Inc. in the coming days will provide insight into the health of consumers. Statistical agencies will also start working through a backlog of reports, including September’s jobs figures.

Government funding resumed only late last week after a 43-day shutdown. The delay has left policymakers with limited visibility on the economy, prompting some Federal Reserve officials to warn that this could complicate decisions on an interest-rate cut next month.

“Despite being dated, the September US payrolls matter as delayed data has left uncertainty for markets and policymakers,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. “The report will help clarify economic momentum and Fed rate-cut expectations.”

Markets are getting some respite after last week’s volatility, which was sparked by fears that this year’s rally has become too dependent on a handful of tech giants. A debt-fueled race to scale up AI capacity has added to concerns that a bubble may be forming.

Uncertainty over the possibility of a hawkish pivot by the Fed has heightened fears that this year’s gains have gone too far. Traders have pushed the odds of a quarter-point rate cut in December below 50% after some officials signaled that further easing is far from assured.

The Fed will release minutes from its Oct. 28-29 meeting on Wednesday to shed light on an unusual split among policymakers. Fed voting members including Philip Jefferson, Christopher Waller and John Williams are due to speak later on Monday.

“I do believe that the Fed still has the potential to cut in December, but that brings volatility,” Adrian Zuercher, co-head of Global Asset Allocation at UBS Global Wealth Management, told Bloomberg TV. “But overall, I do think markets are quite healthy and could actually go further up from here.”

Morgan Stanley’s Michael Wilson is among those predicting further gains for US stocks, tipping a 16% rally for the S&P 500 Index over the next year, one of the most bullish calls from strategists tracked by Bloomberg. His forecast is underpinned by expectations of strong corporate earnings.

“We’re in the midst of a new bull market and earnings cycle, especially for many of the lagging areas of the index,” Wilson wrote in a note.

Corporate News:

Less than three weeks after Boeing Co. unveiled another delay for its flagship 777X airliner, Emirates is doubling down on the giant aircraft by placing another major order for 65 units. Societe Generale SA unveiled a €1 billion ($1.2 billion) share buyback, a boost for investors who have been holding out for more payouts. TotalEnergies SE agreed to buy a 50% stake in a portfolio of western European power-generation assets from the energy holding company of Czech tycoon Daniel Kretinsky for about €5.1 billion ($5.9 billion). Prosus NV expects a surge in interim profit on the back of its growing e-commerce business and an increase in the value of the stake it owns in China’s Tencent. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% as of 7:06 a.m. New York time Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 fell 0.5% The MSCI World Index fell 0.1% Currencies

The Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.2% to $1.1603 The British pound was little changed at $1.3183 The Japanese yen fell 0.1% to 154.77 per dollar Cryptocurrencies

Bitcoin rose 2.2% to $95,483.01 Ether rose 4.2% to $3,199.81 Bonds

The yield on 10-year Treasuries declined three basis points to 4.12% Germany’s 10-year yield declined two basis points to 2.70% Britain’s 10-year yield declined three basis points to 4.54% Commodities

West Texas Intermediate crude was little changed Spot gold fell 0.1% to $4,079.15 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sagarika Jaisinghani.

©2025 Bloomberg L.P.