Stock Pressure Persists as Traders Await Catalysts: Markets Wrap

(Bloomberg) — US equities remained on the back foot after two days of losses as traders waited for new drivers to guide the market’s next move.

Contracts on the S&P 500 edged lower after concerns over stretched valuations and the pace of interest-rate cuts dragged the main gauge back from a record high. Intel Corp. extended gains in the premarket after approaching Apple Inc. to secure an investment.

Bitcoin and other cryptocurrencies fell as the week neared a potentially volatile close, with $22 billion in large options expiries looming. The dollar and Treasuries were little changed. Copper’s rally advanced as traders weighed the impact of supply losses from Freeport-McMoRan Inc.’s huge Grasberg mine.

Bullishness fueled by rate cut anticipation and the artificial intelligence boom culminated last week when the Federal Reserve signaled a faster pace of easing to support a weakening jobs market. Since then, higher oil prices and caution from officials have tempered the optimism amid a lack of clear catalysts.

Swaps currently imply around a 60% chance of two quarter-point US rate cuts for the rest of the year, down from 70% immediately after the Fed meeting. Policymakers penciled in two cuts in their projections.

Friday’s release of the Fed’s preferred inflation gauge may offer clues on the path ahead, with expectations for a slower pace of price growth last month.

“Prosperity targeting being the new mantra of the Federal Reserve doesn’t mean the central bank is inflation-blind,” said Florian Ielpo, head of macro research at Lombard Odier Investment Managers. “Markets being addicted to Fed cuts could experience a temporary hangover.”

In Europe, the Swiss franc was little changed after the Swiss National Bank held its benchmark rate at zero. UK gilts declined across the curve, as market jitters started to impact demand at government auctions ahead of November’s budget. The Stoxx 600 slid 0.5%.

Corporate News:

Assicurazioni Generali SpA and BPCE SA have agreed to scrap a break-up fee should negotiations over their asset management merger fail. Hennes & Mauritz AB shares soared after the fashion retailer’s profit topped expectations, suggesting a focus on its core H&M brand and tight cost controls are helping its turnaround take hold. State Development and Investment Group Co. is considering selling its energy assets in the UK, which it operates through Edinburgh-based subsidiary Red Rock Renewables, according to people familiar with the matter. Troubled auto-part supplier First Brands Group is preparing to file for bankruptcy as soon as next week and is looking to secure a loan of at least $1 billion to keep the business running while it reorganizes, according to people familiar with the negotiations. Intel Corp. has approached Apple Inc. about securing an investment in the ailing chipmaker, according to people familiar with the matter. Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 6:20 a.m. New York time Nasdaq 100 futures fell 0.1% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 fell 0.4% The MSCI World Index was little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1752 The British pound was little changed at $1.3453 The Japanese yen rose 0.1% to 148.74 per dollar Cryptocurrencies

Bitcoin fell 1.6% to $111,762.42 Ether fell 3.2% to $4,035.68 Bonds

The yield on 10-year Treasuries was little changed at 4.14% Germany’s 10-year yield was little changed at 2.74% Britain’s 10-year yield advanced one basis point to 4.68% Commodities

West Texas Intermediate crude fell 0.5% to $64.68 a barrel Spot gold rose 0.5% to $3,756.34 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from James Hirai.

©2025 Bloomberg L.P.