European stocks and U.S. futures experienced declines amid escalating geopolitical tensions and a disappointing revenue forecast from Nvidia Corp., which dampened enthusiasm for technology shares. Bitcoin, however, approached the significant milestone of $100,000.
The Stoxx 600 index struggled to maintain momentum, while futures for the S&P 500 and Asian equities fell sharply following Nvidia’s earnings report, which failed to meet the high expectations set by analysts. The report indicated that Nvidia’s revenue forecast was less optimistic than anticipated, contributing to a broader risk-off sentiment in the markets. In contrast, oil and gold prices surged to session highs as fears intensified regarding a potential escalation in the Russia-Ukraine conflict after reports surfaced of Russia launching an intercontinental ballistic missile.
Geopolitical uncertainty has notably increased since Donald Trump’s election victory, with analysts suggesting that Ukraine is likely to seek strategic advantages before his inauguration. Daniel Murray, CEO of EFG Asset Management in Zurich, remarked, “Trump’s win has brought with it an increase in geopolitical uncertainty and that too is weighing on sentiment.” This backdrop of heightened tensions has contributed to a cautious approach among investors.
In the U.S., Treasury yields dipped slightly as investors awaited key economic data, including initial jobless claims and existing home sales figures. Federal Reserve Bank of Boston President Susan Collins emphasized the need for careful consideration regarding interest rate cuts, indicating that policymakers should avoid acting too hastily or too slowly. Market expectations reflect a less than 50% probability of a rate cut in December.
Amid these developments, Bitcoin reached a new record high of approximately $97,000, driven by discussions within Trump’s team about potentially establishing a new White House position focused on cryptocurrency policy. This surge highlights the growing interest and investment in digital currencies as traditional markets face volatility.
Stocks: The Stoxx Europe 600 fell by 0.1%, S&P 500 futures declined by 0.3%, and Nasdaq 100 futures dropped by 0.5%. The MSCI Asia Pacific Index decreased by 0.4%.
Currencies: The Bloomberg Dollar Spot Index edged down by 0.1%, while the Japanese yen appreciated by 0.4% against the dollar.
Commodities: Brent crude oil rose by 0.9% to $73.50 per barrel, and spot gold increased by 0.5% to $2,663.64 per ounce.
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