Tech Drags US Futures as Global Stocks Eye Records: Markets Wrap

(Bloomberg) — US stock futures were held back once again by a retreat in technology shares on a day when global gauges had record highs in their sights.

Nasdaq 100 contracts were set to drop 0.5% at the open, with Broadcom Inc. falling more than 5% in premarket trading after its sales outlook fell short of lofty expectations. S&P 500 futures slipped 0.1% after the index notched a record close in the previous session. By contrast, gauges for US blue-chip and small-cap stocks were poised to extend their push into fresh highs.

The diverging fortunes for US stocks highlight the broadening of a rally that has put the US benchmark on track for a third successive year of gains. For many investors, this week’s affirmation that the Federal Reserve’s interest-rate easing cycle remains intact is helping clear the way for a year-end rally.

In other parts of the world, Europe’s Stoxx 600 rose as much as 0.5% to a fresh peak, while a measure for Asia advanced to less than 2% from its all-time high.

Traders “are searching for alternative real assets, especially given the Federal Reserve rate cut and the possibility of more to come,” wrote Richard Hunter, head of markets at Interactive Investor. “The rotation also provides something of a hedge for investors, where concentration risk among the ‘Magnificent Seven’ in particular was becoming more of an issue.”

For many investors, diversification across geographies and themes has become a key consideration. After technology heavyweights drove equity gains for much of the year, concerns about stretched valuations and uncertainty over whether vast spending on AI infrastructure will ultimately pay off have prompted investors to look for opportunities elsewhere.

“Given the set-up in markets, diversification is now the price worth paying to keep you fully invested in equities,” wrote Goldman Sachs’s Mark Wilson. He adds that there are compelling investment stories including Korea, Japan, China or the broader emerging markets.

Bloomberg’s index of the dollar traded near a two-month low on Friday and was on track for a third weekly loss. Treasury 10-year yields advanced one basis point to 4.17%.

In commodities, gold rose for a fourth day while silver extended its all-time high. Oil rallied from its lowest close in almost two months.

What Bloomberg Strategists Say…

“At the index level, US equities were boosted by a December Fed meeting that was interpreted as dovish. But beneath the surface, sector performance suggests growing concern about how much further the Fed will cut interest rates.

“Segments of the markets that typically benefit from easing cycles, such as telecoms, real estate, and utilities, have all lagged in the past week. That underperformance is likely to continue.”

— Skylar Montgomery Koning, macro strategist. For the full analysis, click here.

Corporate News:

Shares in UBS Group AG soared to the highest intraday level since early 2008 as a group of influential lawmakers proposed watering down the capital demands that Switzerland wants to impose on the bank. SoftBank Group Corp. is studying potential acquisitions including data center operator Switch Inc., people with knowledge of the matter said, underscoring billionaire founder Masayoshi Son’s growing ambitions to ride an AI-fueled boom in digital infrastructure. Broadcom Inc., a chip company vying with Nvidia Corp. for AI computing revenue, slumped after its sales outlook for the red-hot market failed to meet investors’ lofty expectations. Some of the main moves in markets:

Stocks

The Stoxx Europe 600 rose 0.4% as of 10:58 a.m. London time S&P 500 futures fell 0.1% Nasdaq 100 futures fell 0.5% Futures on the Dow Jones Industrial Average rose 0.2% The MSCI Asia Pacific Index rose 1.2% The MSCI Emerging Markets Index rose 0.9% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1727 The Japanese yen fell 0.2% to 155.92 per dollar The offshore yuan was little changed at 7.0531 per dollar The British pound fell 0.1% to $1.3374 Cryptocurrencies

Bitcoin fell 0.3% to $92,568.1 Ether was little changed at $3,248.07 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.17% Germany’s 10-year yield advanced one basis point to 2.85% Britain’s 10-year yield was little changed at 4.49% Commodities

Brent crude fell 0.2% to $61.17 a barrel Spot gold rose 1.1% to $4,327.48 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Shikhar Balwani, Levin Stamm and Julien Ponthus.

©2025 Bloomberg L.P.