Stocks Waver as Traders Await Iran Deal, Jobs Data: Markets Wrap

(Bloomberg) — Stocks were broadly flat amid weakness in the technology sector, with investors awaiting developments in US-Iran talks and looking ahead to Friday’s key US jobs report.

S&P 500 futures edged 0.1% higher, while Nasdaq 100 contracts slipped 0.4%. Memory maker Sandisk Corp. slid 8% in pre-market trading, while rival Western Digital Corp. plunged 12% after both companies reported earnings. AppLovin Corp. slumped 14% after missing analysts’ revenue estimates.

Attention is also on the $101 billion of SpaceX shares becoming available for trading Thursday. The shares were little changed in premarket trading after the company’s first quarterly earnings report since its listing triggered a 14% slide.

The pause in the tech-led rally comes as investors reassess valuations after AI-related shares rebounded from last month’s selloff. Traders are also focused on Friday’s US non-farm payrolls data, which is expected to show a strengthening jobs market, as they look for clues to the Federal Reserve’s policy path.

Meanwhile, Brent crude held at around $80 per barrel after Iran said it reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, raising the prospect of energy flows resuming through the critical waterway. But a lasting US-Iran deal that would help ease inflation and upward pressure on Treasury yields remains elusive, with President Donald Trump saying on Wednesday he would “see what happens” in ongoing negotiations.

“Until a more positive development in the Middle East is confirmed, and ahead of tomorrow’s important US employment data, markets have taken a wait-and-see stance,” said Karl Steiner, head of analysis at SEB. “This is reflected in the stock market development, a fairly unchanged oil price and small movements in the US 10-year Treasury yield.”

Earnings Season

The Stoxx Europe 600 index rose 0.4% as the earnings season draws to a close. Deutsche Telekom AG, Europe’s biggest phone carrier, jumped more than 5% after raising its share buyback program. Siemens AG plunged after disappointing investors with a muted outlook raise.

Germany’s DAX edged higher after factory orders rose by more than analysts forecast in June, another sign that a long-awaited recovery in Europe’s biggest economy may finally be taking hold.

More earnings news from Europe:

Merck KGaA gained as much as 2.6% after the company raised its full-year earnings and sales outlook due to a stronger performance in its lab equipment and electronics businesses. Wizz Air Holdings Plc fell after reporting a quarterly loss and warning of continued challenges. Swiss Re AG’s first-half profit beat estimates as the re-insurer saw all key business units perform in line with targets, while the firm announced a fresh round of cost cuts. WPP Plc soared after first-half profits beat analysts’ estimates, driven by the advertising agency’s cost-cutting efforts in a sluggish market. Rheinmetall AG declined after cutting its sales forecast for this year as Germany’s biggest defense company deals with the fallout of losing a German naval contract worth several billion euros. Commerzbank AG unveiled a fresh share buyback after reporting net income ahead of analysts’ expectations in the three months through June. Nordic Semiconductor ASA gained after reporting third-quarter revenue head of analysts’ estimates. Zurich Insurance Group AG slipped after underwhelming first-half results. The semiconductor sector was also the focus in Asia as Korea’s Kospi Index — a bellwether for the artificial intelligence trade — fell 4.8% with SK Hynix Inc. and Samsung Electronics Co. leading losses.

“Investors are increasingly asking what incremental catalysts are needed to remain in the Asia memory trade,” said Gary Tan, a portfolio manager at Allspring Global Investments.

Elsewhere, gold rose 0.4% to $4,265 an ounce on expectations that a reopening of the Strait of Hormuz and lower oil prices would ease pressure on the Federal Reserve to increase interest rates, which typically lessens the appeal of non-yielding bullion. Brent fell 0.3% to about $79.20 a barrel after Iran said it had reached an agreement with Oman on a proposed shipping route through the strait, a potential step toward reopening the waterway.

What Bloomberg Strategists Say…

“Today still feels like a wait-and-see session from a macro perspective. Tomorrow’s payrolls report feels binary: a second weak print would strengthen the dovish case, while a strong number would point to the June figures as an anomaly and pull forward expectations for the next hike.

A Bloomberg gauge of the dollar held its losses from the previous session, while Treasuries steadied with the yield on the benchmark 10-year holding at 4.61%.

Global bond and currency investors are debating if it’s time to dust off last year’s “Sell America” trade after a flurry of economic-policy decisions out of Washington over the past two weeks.

Corporate Highlights:

DeepSeek plans to implement a significant price increase across its AI services, an unusual shift from the disruptive Chinese player. Meta Platforms Inc. said one of its AI models accessed the internet and hacked into an outside service’s systems during cybersecurity testing. SoftBank Group Corp. reported a smaller-than-expected decline in quarterly net income, lifted by a big boost from its stake in Intel Corp. while it awaits an OpenAI listing. Alphabet Inc.’s Google is concentrating its artificial intelligence leadership at its Mountain View, California, headquarters to gain momentum in the accelerating race against Anthropic and OpenAI to build the world’s dominant AI models. Nintendo Co. reported stronger-than-expected earnings buoyed by tariff refunds from the US and strong sales of a pair of in-house titles for its flagship Switch 2 console. Some of the main moves in markets:

Stocks

The Stoxx Europe 600 rose 0.4% as of 9:30 a.m. London time S&P 500 futures rose 0.1% Nasdaq 100 futures fell 0.4% Futures on the Dow Jones Industrial Average rose 0.3% 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 fell 0.1% to $1.1541 The Japanese yen was little changed at 157.85 per dollar The offshore yuan was little changed at 6.7516 per dollar The British pound was little changed at $1.3463 Cryptocurrencies

Bitcoin was little changed at $64,841.93 Ether fell 0.2% to $1,912.23 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.62% Germany’s 10-year yield was little changed at 3.12% Britain’s 10-year yield advanced one basis point to 4.90% Commodities

Brent crude rose 0.9% to $80.15 a barrel Spot gold rose 0.5% to $4,268.09 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Matt Turner and Anand Krishnamoorthy.

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