US Stocks Drift as Midterms Keep Traders Cautious: Markets Wrap
(Bloomberg) — US stock futures struggled for direction as investors held back from adding risk just hours before voting starts in the midterm elections.
S&P 500 contracts were little changed. Nasdaq 100 futures climbed 0.5%, signaling a mild rebound after the index entered a technical correction. Brent crude traded below $106 a barrel as traders weighed the prospects for a US-Iran peace deal. Apple Inc. slid 4.4% in early trading on tighter margins.
Treasuries were little changed ahead of the latest job openings report, the first in a slate of releases on the state of US employment this week. The dollar held steady, while gold resumed its downward trend to trade near $3,900 an ounce.
Traders are moving cautiously before US polls open, with control of Congress up for grabs. The election is adding another layer of risk for investors already navigating geopolitical crosswinds at a time when the once-dominant artificial intelligence trade is enduring a sharp pullback.
“Investors are going into the midterms very cautious,” said Alexandre Drabowicz, chief investment officer at Indosuez Wealth Management. “Historically, the S&P typically resumes its climb afterward, and fundamentals remain very, very solid. We need to clear the event.”
The Stoxx 600 fell 0.3%, catching up with US losses that came after Monday’s European close. In Asia, MSCI Inc.’s regional index slipped 1.2%, with South Korea’s tech-heavy Kospi Index sliding more than 3%.
At a time when tech heavyweights are again turning to the bond market to fund their spending on AI, some of the world’s biggest asset managers are warning of bubble risks and an eventual downturn after the sector’s rapid expansion.
A gauge of US-listed chipmakers hit a six-month low on Monday after slumping nearly 30% from a high in June. An exchange-traded fund tracking the sector bounced 2% in premarket trading.
“At some point in time, there’s going to be a downturn, and then things are going to break,” Pacific Investment Management Co.’s Chief Executive Officer Emmanuel Roman said at the 2026 Global Financial Leaders’ Investment Summit in Hong Kong.
Capital Group’s Jody Jonsson said there was a disconnect between what AI companies expect and the actual pace of adoption.
“We’ve had euphoric phases, reality-check phases and phases of doubt, and this is a phase of doubt,” said Indosuez’s Drabowicz. “The market is worried about capex and deteriorating free cash flows. Our view is that in the coming quarters we’ll see capex monetization and a return to free cash flow.”
Corporate Highlights:
Schaeffler AG is set to close five sites in Europe and cut jobs as the supplier faces a persistent downturn in demand for auto components and high costs in Germany. Bayer AG raised its annual profit outlook after increased demand for some of its newer drugs drove a better-than-expected performance at its pharmaceutical unit. Palantir Technologies Inc., the AI-powered data and analytics platform that counts the US military among its chief customers, issued a quarterly outlook that pointed to a potential slowdown in sales growth. Apple Inc. delivered a mixed outlook to investors in its first quarterly report under Chief Executive Officer John Ternus, with narrower profit margins overshadowing an upbeat sales forecast. The heads of Marvell Technology Inc. and Lumentum Holdings Inc. got the blessing of Nvidia Corp.’s Jensen Huang before striking their nearly $103 billion tie-up. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.3% as of 10:02 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures rose 0.4% Futures on the Dow Jones Industrial Average fell 0.5% The MSCI Asia Pacific Index fell 1.2% The MSCI Emerging Markets Index fell 1.7% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1182 The Japanese yen fell 0.1% to 158.17 per dollar The offshore yuan fell 0.4% to 6.6718 per dollar The British pound was little changed at $1.3410 Cryptocurrencies
Bitcoin rose 0.3% to $76,922.46 Ether rose 0.4% to $2,263.74 Bonds
The yield on 10-year Treasuries was little changed at 4.91% Germany’s 10-year yield advanced two basis points to 3.31% Britain’s 10-year yield advanced four basis points to 5.23% Commodities
Brent crude rose 0.9% to $105.76 a barrel Spot gold fell 1% to $3,905.98 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Subrat Patnaik.
©2026 Bloomberg L.P.
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