Tech Giants' Earnings Spark Market Recovery and Bond Stability - Stock Market News Today

Stocks showed promise as tech giants Microsoft Corp. and Alphabet Inc. geared up to unveil their earnings. The bond market also found its footing after recent volatility, hinting at a possible overreaction. Ten-year Treasury yields dipped briefly before steadying.

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Across the pond, Europe's Stoxx 600 index inched up, while U.S. futures suggested a positive turn for shares after a five-day dip. Bitcoin surged past $35,000, while the euro faced challenges against the dollar due to struggles in the French and German economies.

Treasuries steadied after prominent voices raised concerns about a potential economic slowdown. This sparked speculation that recent drops may have been too drastic, potentially leading the Federal Reserve to contemplate reducing interest rates. The unpredictable movements in government bonds have left investors feeling uneasy, especially as a robust economy complicates predictions about the Fed's stance on rates. Additionally, increased government borrowing and global tensions add to the uncertainty.

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Patrick Armstrong, Chief Investment Officer at Plurimi Wealth LLP, advised caution, saying, "This may not be the absolute best time to buy, but I wouldn't advise betting against it either."

Brent crude oil saw a two-day slide come to a halt, pushing beyond $90 per barrel. French President Emmanuel Macron called for a global coalition against Hamas and cautioned other Iranian-backed groups against escalating the conflict during his visit to Israel, where he met with Prime Minister Benjamin Netanyahu.

In a separate development, Bitcoin reached its highest level since May last year, driven by the potential approval of the first U.S. spot Bitcoin ETFs in the coming weeks. Major players like BlackRock Inc. and Fidelity Investments are racing to offer these products.

Companies connected with cryptocurrencies made significant gains in U.S. premarket trading. Marathon Digital, Riot Platforms, Hut 8 Mining, and Cleanspark all surged by at least 12%.

Nasdaq 100 index futures showed a 0.5% rise. Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, expressed confidence in strong results from leading technology and growth firms, despite a relatively slow start to the earnings season.

In Asia, most Chinese stock measures saw an increase after the nation's sovereign wealth fund stepped in by buying exchange-traded funds to support prices.

This rebound in Chinese stocks indicates a commitment from authorities to intervene when there's a significant downward trend, according to Raymond Chen, a fund manager at Zizhou Investment Asset Management.

Noteworthy Events This Week:

• Reserve Bank of Australia Governor Michele Bullock will address the Commonwealth Bank Annual Conference in Sydney on Tuesday.

• Paris-based International Energy Agency releases its yearly world energy outlook report on Tuesday.

• Eurozone S&P Global Services PMI and S&P Global Manufacturing PMI reports on Tuesday.

• Euro-area bank lending survey on Tuesday.

• U.S. S&P Global Manufacturing PMI on Tuesday.

• Earnings reports from Microsoft and Alphabet on Tuesday.

• Australia CPI on Wednesday.

• Germany IFO business climate report on Wednesday.

• Canada rate decision on Wednesday.

• U.S. new home sales on Wednesday.

• Earnings reports from IBM and Meta on Wednesday.

• European Central Bank interest rate decision with President Christine Lagarde holding a news conference on Thursday.

• U.S. wholesale inventories, GDP, U.S. durable goods, initial jobless claims, and pending home sales reports on Thursday.

• Earnings reports from Intel and Amazon on Thursday.

• China industrial profits report on Friday.

• Japan Tokyo CPI report on Friday.

• U.S. PCE deflator, personal spending and income, University of Michigan consumer sentiment reports on Friday.

• Earnings report from Exxon Mobil on Friday.

Market Trends Snapshot:

• Stoxx Europe 600 showed minimal change as of 1:18 p.m. London time.

• S&P 500 futures rose by 0.5%.

• Nasdaq 100 futures rose by 0.5%.

• Futures on the Dow Jones Industrial Average rose by 0.4%.

• MSCI Asia Pacific Index rose by 0.2%.

• MSCI Emerging Markets Index rose by 0.1%.

Currency Exchange:

• The Bloomberg Dollar Spot Index rose by 0.1%.

• The euro fell by 0.4% to $1.0627.

• The Japanese yen remained stable at 149.80 per dollar.

• The offshore yuan fell by 0.1% to 7.3196 per dollar.

• The British pound fell by 0.3% to $1.2214.

Cryptocurrency Highlights:

• Bitcoin surged by 9.3% to $34,482.7.

• Ether rose by 7.6% to $1,839.93.

Bonds Update:

• The yield on 10-year Treasuries increased by three basis points to 4.88%.

• Germany's 10-year yield decreased by three basis points to 2.85%.

• Britain's 10-year yield decreased by two basis points to 4.58%.

Commodity Focus:

• Brent crude rose by 0.3% to $90.08 per barrel.

• Spot gold fell by 0.6% to $1,961 per ounce.

Also Read: Big Tech Giants Headline Earnings Reports: What Investors Should Watch