US Equity Futures Rebound as Big Tech Claws Back: Markets Wrap

(Bloomberg) — US stock futures looked set to claw back ground led by premarket gains in Nvidia Corp. after Friday’s sharp selloff. German stocks gained after conservatives led by Friedrich Merz emerged as the winners in weekend vote.

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S&P 500 contracts rose 0.5%, while those on the Nasdaq 100 futures rose 0.4%. Berkshire Hathaway Inc. rose in early trading on solid results boosted by a strong jump in insurance underwriting. For many investors though, a key test for AI will be Nvidia earnings on Wednesday.

“Markets are in wait and see mode until we see those bellwether AI earnings on Wednesday as that could be a key turning point,” Laura Cooper, head of global investment strategy at Nuveen, said in an interview.

US equities won’t remain unpopular for long given the robust outlook for economic growth and corporate earnings, according to some of Wall Street’s top strategists. After years of outperformance, the benchmark S&P 500 Index is trailing international peers in 2025 as investors are put off by uncertainty from US President Donald Trump’s policies on tariffs and immigration as well as lofty valuations.

The Stoxx Europe 600 Index rose 0.2% with an index of large-cap German shares gaining 0.9%. Electrification stocks, including Siemens Energy AG, ABB Ltd and Schneider Electric SE, fell as concerns grew around data centers spending after a report that Microsoft Corp. has begun canceling leases for a substantial amount of datacenter capacity.

The euro added 0.1% after paring earlier gains after initial enthusiasm about Germany’s election gave way too concern the new government may lack a consensus to push through much-needed economic reforms.

Merz emerged as the winner in Sunday’s election, but the results gave his Christian Democrat-led bloc just one clear path to power and they face intense pressure to move quickly to form a government and rally support for much-needed economic reforms and potentially loosen strict borrowing rules, known as the debt brake.

“It’s a complicated election outcome. There is a clear mandate and it should allow for relatively quick coalition agreements,” Jari Stehn, chief European economist at Goldman Sachs Group Inc., said in a Bloomberg Television interview. “The far right and far left potentially have a blocking minority and therefore could stop any constitutional reform which would be needed to really unlock significant money.”

Key events this week:

Eurozone CPI, Monday
Israel rate decision, Monday
South Korea rate decision, Tuesday
US consumer confidence, Tuesday
Richmond Fed President Tom Barkin speaks, Tuesday
Thailand rate decision, Wednesday
Nvidia earnings, Wednesday
G-20 finance ministers and central bank governors meet in Cape Town though Feb. 27
Atlanta Fed President Raphael Bostic speaks, Wednesday
Germany CPI, unemployment, Friday
India GDP, Friday
Japan Tokyo CPI, industrial production, retail sales, Friday
US PCE inflation, income and spending, Friday
Chicago Fed President Austan Goolsbee speaks, Friday

Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.5% as of 5:21 a.m. New York time
Nasdaq 100 futures rose 0.4%
Futures on the Dow Jones Industrial Average rose 0.7%
The Stoxx Europe 600 rose 0.2%
The MSCI World Index was little changed

Currencies

The Bloomberg Dollar Spot Index was little changed
The euro rose 0.1% to $1.0471
The British pound was little changed at $1.2636
The Japanese yen fell 0.3% to 149.65 per dollar

Cryptocurrencies

Bitcoin fell 0.1% to $95,644.82
Ether fell 4.7% to $2,677.16

Bonds

The yield on 10-year Treasuries was little changed at 4.43%
Germany’s 10-year yield was little changed at 2.48%
Britain’s 10-year yield was little changed at 4.57%

Commodities

West Texas Intermediate crude rose 0.3% to $70.61 a barrel
Spot gold rose 0.2% to $2,943.14 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson.