Stocks Pause Amid Valuation Concerns; Dollar Dips: Markets Wrap

(Bloomberg) — Equity markets took a breather at the end of an up-and-down week dominated by speculation about the sustainability of the blistering global equity rally.

Contracts on the S&P 500 were steady, with the gauge on track for a modest weekly gain after it closed at record highs twice before pulling back the next day. Intel Corp. rose in premarket trading after the US government-backed chipmaker introduced new products. Qualcomm Inc. declined as China started an antitrust probe into its acquisition of a connected-vehicle technology firm.

Crude oil fell for a second day as a deal to end the war in Gaza took shape. The dollar slipped after a four-day rally. Treasury yields dipped along with the dollar. Gold clawed back some of Thursday’s sharp losses but held below $4,000.

Global stocks have rebounded more than 30% from their April lows, leading investors to reassess stretched valuations in the tech sector against the backdrop of easier Federal Reserve policy and a resilient economy. Traders are looking to the upcoming earnings season to gauge whether share prices have run ahead of fundamentals.

“Dips in the equity complex should still be viewed as buying opportunities, with the path of least resistance continuing to lead higher amid resilient underlying economic growth, robust earnings growth, and a looser Fed policy backdrop,” said Michael Brown, senior research strategist at Pepperstone Group Ltd.

While tech has led the way in the S&P 500’s rebound, other sectors such as electrical equipment makers and construction firms, have also benefited from AI spending, broadening the rally, according to Wolf von Rotberg, an equity strategist at Bank J Safra Sarasin. But with the benchmark now at its most expensive in almost 25 years, based on the estimated price-to-earnings ratio, valuations are looking too rich for comfort, he said.

“Even though the AI narrative has been undisrupted lately, we would caution against chasing the market after such a strong rally and at these valuations,” Von Rotberg said.

The Stoxx Europe 600 benchmark slipped, led by energy companies and miners. France’s CAC 40 index fluctuated as President Emmanuel Macron continued his search for a new prime minister capable of holding together a fragile budget accord among rival lawmakers.

Among individual movers in Europe, Stellantis NV gained after the carmaker reported that third-quarter deliveries climbed 13% on surging sales in North America.

Meanwhile, the yen extended gains against the dollar after Japan’s ruling coalition collapsed Friday. Nikkei 225 futures in Singapore fell and Japanese bond futures rose.

Elsewhere, the Argentine peso rebounded after the US rushed to stabilize the country’s economy, offering $20 billion in financing and carrying out a rare intervention in currency markets after weeks of sharp declines.

Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 6:18 a.m. New York time Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 fell 0.2% The MSCI World Index fell 0.1% Currencies

The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.1% to $1.1579 The British pound was little changed at $1.3295 The Japanese yen rose 0.2% to 152.71 per dollar Cryptocurrencies

Bitcoin rose 0.2% to $121,455.14 Ether fell 0.1% to $4,334.18 Bonds

The yield on 10-year Treasuries declined three basis points to 4.11% Germany’s 10-year yield declined three basis points to 2.68% Britain’s 10-year yield declined three basis points to 4.71% Commodities

West Texas Intermediate crude fell 1% to $60.87 a barrel Spot gold rose 0.4% to $3,993.05 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Anand Krishnamoorthy.

©2025 Bloomberg L.P.