(Bloomberg) — A global stocks selloff fueled by concerns about the American economy eased as US equity futures signaled modest gains on Wall Street. Bitcoin was poised to snap five days of losses.
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Contracts for the S&P 500 were up 0.4% after the benchmark index fell the most this year on Monday. Those on the Nasdaq 100 rose after the gauge’s deepest slump since 2022. Europe’s Stoxx 600 index was steady. Asian shares bounced off an intraday five-week low.
The euro strengthened 0.6% amid optimism lawmakers in Germany will reach an agreement over defense spending. A gauge of the dollar fell. Yields on policy sensitive two-year Treasuries pared a drop to the lowest level since October.
The mood in markets remains nervous after Wall Street investors tempered their bullish views due to concerns that tariffs and government spending cuts will hit US growth. There’s also an increasing view that President Donald Trump won’t intervene to support the market, while the Federal Reserve has signaled it’s in no rush to adjust interest-rate policy.
“In the short-term, it remains difficult to advocate buying dips, with the bear case holding more weight,” said Michael Brown, senior research strategist at Pepperstone. “Growth expectations continue to slide, dragging earnings expectations lower alongside, all the while policy uncertainty clouds the outlook, and as a ‘Fed put’ remains about as elusive as one from the White House.”
In the US Monday, the S&P 500 dropped 2.7%. The Nasdaq 100 lost 3.8%. In the megacap space, Tesla Inc. sank 15% while Nvidia Corp. drove a closely watched gauge of chipmakers to the lowest since April. About 10 high-grade companies delayed US bond sales.
Citigroup Inc. strategists downgraded US stocks to neutral from overweight while upgrading China to overweight, saying US exceptionalism is at least on pause. Citi raised China to overweight as the country looks attractive even after a recent rally.
Earlier, HSBC strategists raised their rating on European equities, excluding the UK, to overweight from underweight as they expect euro-zone fiscal stimulus to be “a potential game-changer.”
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