1) Wall Street on Hold Ahead of Key Data
U.S. futures on the S&P 500 and Nasdaq slipped into a cautious range as traders awaited a heavy batch of economic reports, including updated GDP, jobless claims, and durable goods orders, while tomorrow’s PCE inflation release remains the main event. Market sentiment has turned more sensitive following recent Fed comments on “elevated valuations,” meaning any upside surprise in inflation or growth could lift bond yields and the dollar while pressuring tech stocks. Pre-market trading reflects risk rebalancing after a strong rally earlier this week. For traders, the key signal remains the alignment between the Dollar Index (DXY) and the 10-year Treasury yield as leading indicators of risk appetite, with potential false breakouts likely before the data hits.
2) Europe Slips Under U.S. Trade Pressure
European markets fell today, with the STOXX 600 dragged lower by losses in healthcare and industrial stocks after the U.S. launched new national security probes into imports of medical equipment, robotics, and industrial machinery. Shares of major companies in these sectors retreated, while H&M surged on stronger-than-expected earnings and miners benefited from rising copper prices. Overall, the market is pricing in potential tariffs or restrictions that could squeeze margins for European medtech and industrial firms and further fragment supply chains. At the same time, investors’ focus remains on U.S. economic data and its ability to drive global bond yields and dollar moves.
3) Oil Pulls Back After Sharp Rally
Oil prices eased slightly today after jumping nearly 3% yesterday to hit a seven-week high, driven by a surprise drop in U.S. crude inventories and concerns over supply disruptions following attacks on Russian infrastructure. The current pullback reflects profit-taking and expectations of a potential OPEC+ supply increase in Q4, alongside seasonal signs of weaker demand for fuel. For markets, lower oil prices ease cost pressures on energy-intensive sectors but may also hint at softer global demand. Traders are watching the $69–70 per barrel zone as a key pivot for Brent, with energy equities remaining highly sensitive to any fresh supply shocks.
