Stock selloff hits pause in countdown to Nvidia: Markets Wrap

by Andre Janse van Vuuren and Julien Ponthus

Stocks steadied after a bruising run of losses, with traders refraining from taking big bets ahead of Nvidia Corp.’s earnings in what will be a pivotal test for big tech.

S&P 500 futures gained 0.3%, putting the benchmark on track to end its longest losing streak since August after touching a one-month low. European stocks wavered and losses in Asia were mild. Treasuries held after days of haven-driven gains. The dollar edged higher. Bitcoin traded below $92,000. 

The US benchmark has lost more than 3% this month as the tech giants that powered much of 2025’s gains came under pressure. Nvidia’s results, due after the close, are seen as a bellwether for whether lofty valuations and massive capital spending in artificial intelligence remain justified.

Wall Street executives have urged caution, warning investors to brace for further losses. Goldman Sachs President John Waldron said “technicals are kind of more biased for more protection, and more downside.” Atlas Merchant Capital’s Bob Diamond branded the turmoil as a “healthy correction.”

For Benoit Peloille, chief investment officer at Natixis Wealth Management, the ongoing weakness “could easily morph into a 10% to 15% correction” for the S&P 500. “I’m not sure that even very good results from Nvidia would be enough to prevent that,” he said.

Investors will also be watching the release of minutes from the Federal Reserve’s meeting last month. The unwinding of expectations for a December interest-rate cut has added to the market malaise, with traders now seeing less than a 50% chance of a quarter-point reduction.

“We expect the minutes to show a deeply divided Fed with concerns over weaker employment picture but sticky inflation,” wrote Mohit Kumar, chief economist and strategist for Europe at Jefferies.

In the UK, traders added to bets that the Bank of England will cut rates next month after inflation fell for the first time in seven months. The pound weakened 0.2%, while the yield on two-year gilts retreated two basis points to 3.77%.

Corporate News:

• The Dutch government suspended its powers over chipmaker Nexperia, restoring control to its Chinese owner and defusing a standoff with Beijing that had begun to hamper automotive production around the world.
• The Magnum Ice Cream Company BV is seeking €3 billion from a debut bond sale on Wednesday ahead of the firm’s spin off from Unilever Plc.
• Amazon.com Inc. lost a European Union court fight against regulators’ efforts to draw it under the scope of its digital content rulebook.

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 was little changed as of 10:07 a.m. London time
• S&P 500 futures rose 0.3%
• Nasdaq 100 futures rose 0.3%
• Futures on the Dow Jones Industrial Average rose 0.1%
• The MSCI Asia Pacific Index fell 0.4%
• The MSCI Emerging Markets Index fell 0.1%

Currencies

• The Bloomberg Dollar Spot Index rose 0.1%
• The euro was little changed at $1.1573
• The Japanese yen fell 0.3% to 155.98 per dollar
• The offshore yuan was little changed at 7.1137 per dollar
• The British pound fell 0.2% to $1.3114

Cryptocurrencies

• Bitcoin fell 0.9% to $91,586.82
• Ether rose 0.2% to $3,103.41

Bonds

• The yield on 10-year Treasuries was little changed at 4.12%
• Germany’s 10-year yield was little changed at 2.71%
• Britain’s 10-year yield was little changed at 4.55%

Commodities

• Brent crude fell 0.5% to $64.58 a barrel
• Spot gold rose 1.2% to $4,115.70 an ounce

This story was produced with the assistance of Bloomberg Automation.

Copyright Bloomberg News