Stock Futures, Bitcoin Trim Losses After Selloff: Markets Wrap

(Bloomberg) — US stock futures and Bitcoin pared losses, giving an early sign that the broad selloff across global markets is starting to ease. Treasuries rose and the dollar was steady.

S&P 500 futures slipped 0.2% after falling as much as 0.8%. Bitcoin briefly dropped below $90,000 before bouncing from the lows. Amazon.com Inc. and Microsoft Corp. fell more than 1% in premarket trading after their ratings were cut by Rothschild & Co Redburn.

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Bonds were the main beneficiaries as investors continued to seek havens, with the yield on 10-year Treasuries dropping three basis points to 4.11%. Gold fluctuated near $4,000 an ounce.

The cross-asset moves underscored continued unease over interest rates and technology earnings, with Nvidia Corp.’s report on Wednesday poised to test investor nerves over lofty valuations in the artificial-intelligence sector. Focus will then turn to the delayed September jobs report due Thursday, a key gauge for the Federal Reserve’s policy outlook.

“The question is whether the selloff will continue after Nvidia’s results,” said Eric Bleines, a fund manager at SwissLife Gestion Privée in Paris. “This will make the difference between the market just taking a breather or going for a correction.”

Meanwhile, in a sign that US government agencies were resuming operations after the longest shutdown on record, the Labor Department’s website showed 232,000 initial jobless claims for the week ended Oct. 18. Data for the previous three weeks weren’t available. Weekly employment estimates from ADP Research due later Tuesday will offer more insight into the labor market.

Barclays Plc strategists led by Anshul Gupta said Nvidia’s results and the September payrolls report will shape near-term sentiment. They see potential upside for the chipmaker amid accelerating AI investment and rising demand for computing infrastructure, but note the stock has posted negative one-week returns in four of its last five earnings periods.

Options suggest an earnings-related move of about 6.4%, roughly matching Nvidia’s recent average, according to data compiled by Bloomberg.

“A bit of volatility and a pullback into year-end was on Santa’s wish list for a majority of institutional accounts,” wrote Mohit Kumar, chief economist and strategist for Europe at Jefferies. “Apart from retail investors, we do not think there is a lot of pain on the street.”

Analysts who study chart patterns in US stocks warn the latest dip could turn into a full-blown correction of at least 10%.

Monday’s selloff in the S&P 500 extended the decline from its last record on Oct. 28 to 3.2%. The move below its 50-day moving average ended the second-longest stretch this century above the closely watched trend line.

“The recent talk about the sustainability of the AI trade, especially in regards to monetizing the huge investments made in capex, eventually forced investors to take the red pill, accepting the harsh reality that some valuations are simply not justifiable,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management.

What Bloomberg Strategists Say…

“Investors are looking for confirmation that the labor market deterioration that prompted expectations for Fed cuts before the shutdown has continued, and was likely exacerbated by it. That sets up for a weaker dollar and stronger US government bonds heading into Thursday’s payrolls report.”

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

Some of the main moves in markets:

Stocks

The Stoxx Europe 600 fell 1.2% as of 10:57 a.m. London time S&P 500 futures fell 0.2% Nasdaq 100 futures fell 0.2% Futures on the Dow Jones Industrial Average fell 0.3% The MSCI Asia Pacific Index fell 2.3% The MSCI Emerging Markets Index fell 1.7% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1583 The Japanese yen was little changed at 155.41 per dollar The offshore yuan was little changed at 7.1138 per dollar The British pound was little changed at $1.3148 Cryptocurrencies

Bitcoin fell 0.4% to $91,487.64 Ether rose 1.9% to $3,063.49 Bonds

The yield on 10-year Treasuries declined three basis points to 4.11% Germany’s 10-year yield declined two basis points to 2.70% Britain’s 10-year yield was little changed at 4.53% Commodities

Brent crude was little changed Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.

–With assistance from Levin Stamm, Sagarika Jaisinghani, Subrat Patnaik and Christian Dass.

©2025 Bloomberg L.P.