Stocks Hold Losses Before Tech Earnings, Oil Drops: Markets Wrap
(Bloomberg) — Stocks struggled for direction after a volatile week as investors positioned for a busy stretch of tech earnings that will offer clues on the staying power of the artificial intelligence trade. Treasuries rose and oil declined.
Nasdaq 100 Index futures slipped 0.2% after the underlying gauge posted a second consecutive weekly loss, while a US chip index notched its longest losing streak since November. Asian shares fell 0.1% after swinging between small gains and losses. The regional gauge has declined for four straight weeks — the longest such run since April. European shares, though, were set to open 0.3% higher.
Providing some support, global oil benchmark Brent dropped 1.5% from a six-month high to about $114.95 a barrel. President Donald Trump told Fox News it’s “getting to be decision time” on whether he will make a deal with Tehran or “finish it off.” Meanwhile, Iran will host top security and defense officials from Saudi Arabia, Pakistan and Turkey for regional security talks.
Elsewhere, a Tokyo-based exchange-traded fund tracking Brazilian stocks slumped as much as 16% after Luiz Inácio Lula da Silva pulled off a surprising win in Sunday’s runoff. The euro strengthened and French bond futures gained.
Spending on the AI buildout will come under scrutiny as investors assess earnings from Microsoft Corp., Alphabet Inc. and Amazon.com Inc. following a volatile stretch for technology shares. The Federal Reserve and Bank of Japan will also deliver policy decisions as officials grapple with stubborn inflation, higher energy costs and elevated global bond yields.
“Global markets are preparing for another big week,” Nick Twidale, chief market analyst at AT Global Markets in Sydney, wrote in a note. The focus is “set to shift back towards central banks and interest rates after several weeks of geopolitical headlines dominating market moves.”
What Bloomberg’s Strategists Say…
“French bond futures are enjoying a much brighter start to this week than last, with a sentiment boost after Moody’s decision to keep France’s credit rating at its current level. Investors will be looking for the Germany-France yield spread to narrow after ballooning wider in recent weeks.”
— Mark Cranfield, MLive Strategist. Click here for the full analysis.
Elsewhere, French bond futures jumped, outperforming bund futures, after the nation avoided a downgrade at Moody’s Ratings and a repeat of large-scale violence and looting.
Treasuries rose across the curve, with the yield on the benchmark 10-year falling three basis points to 4.97%.
“AI doubts, slowdown risks, political uncertainties — in Europe and the US mid-terms — will mean that demand for safety would remain high for awhile,” said Eugene Leow, senior rates strategist at DBS Bank Ltd. in Singapore. “At these absolute yield levels, US Treasuries should function as a risk-off hedge.”
The AI trade remained under pressure as the Kospi Index in South Korea fell 1.5%. Goldman Sachs Group Inc. strategists slashed their target for the benchmark by 25%. Chinese AI model developers slumped, while chip-related stocks were the biggest losers in Japan’s Nikkei.
In Brazil, markets are bracing for steep losses after Lula’s stunning comeback to defeat Flávio Bolsonaro, the right-wing candidate that many investors preferred. Bolsonaro called for the annulment of the presidential runoff result.
A currency derivatives contract on the CME exchange showed the real at 5.55 per dollar. While not a direct indication of pricing, the move implies a more than 10% plunge in the real from the close on Friday.
“Markets weren’t positioned for this,” said Anna Wu, an investment strategist and founder of Floodlines Research. “It’s more than a knee-jerk in my view as the local market now faces real risk of government debt and currency weakness.”
Corporate Highlights:
Elon Musk said SpaceX has closed a $40 billion debt deal to pay for the chips it needs to fuel its artificial intelligence ambitions. However, people familiar with the matter said the parties were still engaged in pricing discussions as of Sunday and the deal had not yet closed. Volkswagen AG plans to build a new $4 billion factory for its premium Audi brand in the southern US state of Georgia. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 6:50 a.m. London time Nasdaq 100 futures fell 0.1% Futures on the Dow Jones Industrial Average rose 0.2% The MSCI Asia Pacific Index fell 0.1% The MSCI Emerging Markets Index fell 0.2% Hong Kong’s Hang Seng rose 0.5% The Shanghai Composite was little changed Euro Stoxx 50 futures rose 0.3% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.2% to $1.1219 The Japanese yen was little changed at 156.95 per dollar The offshore yuan was little changed at 6.6674 per dollar The British pound was little changed at $1.3375 Cryptocurrencies
Bitcoin fell 0.6% to $79,916.76 Ether fell 1.3% to $2,313.52 Bonds
The yield on 10-year Treasuries declined three basis points to 4.97% Japan’s 10-year yield declined two basis points to 2.780% Australia’s 10-year yield was little changed at 5.16% Commodities
Spot gold rose 0.3% to $4,008.18 an ounce West Texas Intermediate crude fell 2% to $101.23 a barrel This story was produced with the assistance of Bloomberg Automation.
–With assistance from Abhishek Vishnoi, Masaki Kondo and Ruth Carson.
©2026 Bloomberg L.P.
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