(Bloomberg) — The relentless advance in technology shares is set to drive the Nasdaq 100 to a 10th straight day of gains, just as the Federal Reserve prepares to launch a new cycle of interest-rate cuts. Gold closed in on $3,700 an ounce.
Futures for the index advanced 0.4%, with Tesla Inc. rising 2.5% in premarket trading. S&P 500 contracts climbed 0.2% after the benchmark powered through the 6,600 mark on Monday. Europe’s Stoxx 600 was little changed. MSCI’s gauge for Asian shares hit a record and is poised for its best streak in nearly five years.
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Stock bulls are riding high ahead of the Fed’s widely expected 25-basis-point cut on Wednesday, the first move in a policy easing round projected to run into 2026. Rate-sensitive tech shares have led the charge in the post-Liberation Day rebound, fueled by enthusiasm over the vast earnings potential tied to artificial intelligence.
“Capex and profit forecasts linked to AI are overwhelming,” said Thomas Brenier, head of equities at Lazard Freres Gestion. “Look at Oracle, it seems that the sky is the limit.”
Expectations of aggressive Fed rate cuts drove the dollar toward its weakest level since July. The euro climbed 0.3%, nearing its strongest point in four years. The divergence reflects the Fed’s imminent shift toward easing, in sharp contrast with the European Central Bank, where policymakers have signaled an end to their own loosening cycle.
Later on Tuesday, traders are set for a final read on the American consumer. Retail sales data for August are forecast to show a 0.2% increase, following stronger advances in the previous two months. With the jobs market softening and prices rising, questions remain over how long consumers will keep spending freely.
“In the session ahead, we navigate US retail sales and that poses a degree of risk to markets,” wrote Chris Weston, head of research at Pepperstone Group. “However, with the Fed meeting looming large in the following session, it will likely take an outsized surprise in retail sales to really move the dial on risk.”
Corporate News:
President Donald Trump said he’s filing a $15 billion defamation and libel lawsuit against The New York Times, accusing the paper of serving as a “mouthpiece” for the Democrats. BNP Paribas SA raised key return and capital targets as Chief Executive Officer Jean-Laurent Bonnafe overhauls the French lender’s domestic network ahead of a new strategic plan. Hesai Group, the world’s largest maker of lidar sensors used in cars, rose in its Hong Kong trading debut after its HK$4.2 billion ($535 million) listing in the city. Tencent Holdings Ltd. is considering raising about 8 billion yuan ($1.1 billion) in its first bond sale in four years, according to people familiar with the matter. Alphabet Inc. on Monday joined an elite group of companies valued at more than $3 trillion, the latest sign of improving investor sentiment toward the Google parent. Anglo American Plc signed an agreement with Chile’s state copper company Codelco to jointly develop their adjacent mines near Santiago in a bid to boost production without major investments. Unilever Plc appointed Srinivas Phatak as its chief financial officer, replacing Fernando Fernandez who was promoted to chief executive officer following a board reshuffle. Verisure, the alarm company owned by Hellman & Friedman, is considering launching an initial public offering in Stockholm as soon as this week, according to people familiar with the matter, kicking off what could be Europe’s largest IPO in three years. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 was little changed as of 9:56 a.m. London time S&P 500 futures rose 0.2% Nasdaq 100 futures rose 0.4% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index rose 0.7% The MSCI Emerging Markets Index rose 0.7% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.3% to $1.1797 The Japanese yen rose 0.3% to 146.97 per dollar The offshore yuan was little changed at 7.1128 per dollar The British pound rose 0.2% to $1.3632 Cryptocurrencies
Bitcoin rose 0.2% to $115,668.06 Ether was little changed at $4,510.75 Bonds
The yield on 10-year Treasuries declined one basis point to 4.02% Germany’s 10-year yield was little changed at 2.68% Britain’s 10-year yield was little changed at 4.63% Commodities
Brent crude fell 0.5% to $67.08 a barrel Spot gold rose 0.4% to $3,695.48 an ounce This story was produced with the assistance of Bloomberg Automation.
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