US futures point to recovery after Nvidia-led slump: market mixed

(Bloomberg) — Stock futures pointed to gains at the open on Wall Street, with shares of technology leader Nvidia Corp. rising. recovering in pre-market trading.

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Contracts on the tech-heavy S&P 500 and Nasdaq rose 0.2% and 0.4%, respectively, amid speculation that a three-day sell-off that wiped more than $400 billion from the company’s market capitalization Nvidia went overboard. The chipmaker rose as much as 3.5% in pre-market trading on Tuesday.

The pullback in technology stocks was “purely an investor/sentiment story,” analysts at Danske Bank wrote in a note. “Fundamentals remain unchanged from last week.”

Later, the US Treasury kicks off this week’s trio of bond sales with an offering of $69 billion in two-year notes. Demand for the shorter, rate-sensitive debt is expected to be stronger than last month’s supply ahead of Friday’s statistics, which are expected to show a slowdown in the Fed’s preferred inflation gauge.

Technology stocks have been the focus of US markets this week, with traders rebalancing their portfolios as the quarter comes to a close. They have been taking profits from the AI-driven frenzy for technology stocks and moving into value stocks and other laggards.

Shares in Europe fell 0.3%, weighed down by a more than 10% drop in planemaker Airbus SE, which cut its guidance amid persistent supply chain issues. Germany’s Merck KGaA also fell, following a second surprise failure of a promising drug.

There are signs that calm is returning to French markets, with yield spreads in Germany retreating from their highest level in more than a decade. Jordan Bardella, the leader of the National Rally party leading in the polls, sought to reassure investors on Monday with assurances that he will not disrupt the country’s finances if his party wins an absolute majority.

French bonds suggest investors’ nerves are calming ahead of elections

Corporate Highlights:

• Airbus now expects to deliver 770 aircraft instead of 800 in 2024, it said on Monday, after European markets closed. Adjusted earnings before interest and taxes will reach 5.5 billion euros ($5.9 billion) this year, below the previous target of 7 billion euros.

• Merck KGaA fell 11% on Tuesday, the biggest drop since December, after the company announced on Monday that it would discontinue development of the drug, xevinapant, for the treatment of head and neck cancer.

• Eurofins Scientific SE rose more than 5% in Paris after Monday’s 16% drop. The company rejected claims made by Carson Block’s Muddy Waters Research that caused its shares to fall the most in two decades, saying it is confident in the integrity of its accounts.

The story continues

Main events this week:

• U.S. Conference Board Consumer Confidence, Tuesday

• Fed’s Lisa Cook and Michelle Bowman Speak Tuesday

• New home sales in the US, Wednesday

• China’s industrial profits, Thursday

• Eurozone economic confidence, consumer confidence, Thursday

• US Durable Goods, Initial Unemployment Claims, GDP, Thursday

• Nike releases results Thursday

• Japan Tokyo CPI, unemployment, industrial production, Friday

• US PCE Inflation, Spending and Income, Consumer Sentiment from the University of Michigan, Friday

• Fed’s Thomas Barkin Speaks on Friday

Some of the main movements in the markets:

Actions

• S&P 500 futures were up 0.2% at 6:42 a.m. New York time

• Nasdaq 100 futures rose 0.4%

• Futures on the Dow Jones Industrial Average were little changed

• The Stoxx Europe 600 fell 0.3%

• MSCI World Index little changed

Coins

• The Bloomberg Dollar Spot index was little changed

• The euro was little changed at $1.0723

• The British pound was little changed at $1.2687

• The Japanese yen rose 0.1% to 159.41 per dollar

Cryptocurrencies

• Bitcoin rose 3% to $61,277.15

• Ether rose 1.9% to $3,371.41

Titles

• The 10-year Treasury yield was little changed at 4.22%

• Germany’s 10-year yield fell three basis points to 2.39%

• Britain’s 10-year yield fell four basis points to 4.04%

goods

This story was produced with help from Bloomberg Automation.

–With assistance from Toshiro Hasegawa, Aya Wagatsuma and Sujata Rao.

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