Nasdaq 100 futures rise on Alibaba's strong earnings
Futures contracts on the Nasdaq 100 index saw a rise following strong earnings from Alibaba Group Holding Ltd., which sparked renewed optimism around artificial intelligence.
Nasdaq 100 contracts added about 0.4% and US-listed Chinese stocks rose in premarket trading, News.Az reports, citing Bloomberg.
Still, the gains were capped as digital payments firm Block Inc., software firm Akamai Technologies Inc., and EV maker Rivian Automotive Inc. declined premarket after issuing weak guidance. UnitedHealth Group Inc. slid 10% after a report that the US is probing the insurer’s billing practices. Futures on the S&P 500 were up 0.1%.
US equities are lagging their European and Asian counterparts so far this year, and Bank of America Corp. strategist Michael Hartnett reiterated a preference for global stocks to US peers, seeing markets such as Germany, China, Japan and South Korea as more attractive at a time when business activity is improving. US companies’ profit outlooks for 2025 have also been relatively subdued, strategists at JPMorgan Chase & Co. noted.
In Europe, the Stoxx 600 Index added 0.5%, heading for its ninth consecutive weekly gain on the back of resilient profits and optimism over peace talks in Ukraine. European equity funds enjoyed about $4 billion in inflows in the week through Feb. 19, the most since February 2022, according to a Bank of America Corp. note that cited EPFR Global data.
Earlier, Chinese technology stocks surged to their highest level since 2022, lifted by a 14% jump in Alibaba.
Meanwhile, the dollar rose about 0.3% against G-10 peers ahead of US purchasing managers data, with the composite reading seen at 53.2, only slightly below the January reading. Earlier in Europe, PMI data showed business activity in the region hardly grew in February, reinforcing fears that the bloc remains mired in stagnation.
Bonds gained, with 10-year Treasury yields extending the previous day’s decline, after Treasury Secretary Scott Bessent told Bloomberg Television that any move to boost the share of longer-term debt in issuance is some ways off.
Traders are now looking ahead to Germany’s weekend election and hoping the results will allow the Conservative front-runner to forge a coalition that can push through economic reforms and loosen borrowing rules.
Gold headed for an eighth consecutive weekly advance as the geopolitical and trade tensions fueled demand for the precious metal.
Some of the main moves in markets:
Stocks
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S&P 500 futures were little changed as of 8:24 a.m. New York time
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Nasdaq 100 futures rose 0.4%
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Futures on the Dow Jones Industrial Average fell 0.5%
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The Stoxx Europe 600 rose 0.5%
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The MSCI World Index was little changed
Currencies
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The Bloomberg Dollar Spot Index rose 0.3%
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The euro fell 0.3% to $1.0466
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The British pound fell 0.2% to $1.2645
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The Japanese yen fell 0.5% to 150.37 per dollar
Cryptocurrencies
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Bitcoin rose 1% to $99,158.89
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Ether rose 3.7% to $2,827.25
Bonds
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The yield on 10-year Treasuries declined two basis points to 4.49%
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Germany’s 10-year yield declined five basis points to 2.48%
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Britain’s 10-year yield was little changed at 4.61%
Commodities
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West Texas Intermediate crude fell 0.7% to $71.96 a barrel
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Spot gold fell 0.2% to $2,933.14 an ounce
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