ADVFN UK Market News

Category: Market Summary

  • UK Defence Shares Retreat After Starmer Signals Openness to Future EU SAFE Fund

    UK Defence Shares Retreat After Starmer Signals Openness to Future EU SAFE Fund

    UK defence stocks moved lower on Monday after Prime Minister Keir Starmer indicated that Britain could revisit participation in a future European Union defence funding initiative.

    Speaking ahead of meetings with EU officials in London later this week, Starmer said the government would consider taking part in a possible second, multi-billion-euro expansion of the EU’s SAFE loans programme. The comments weighed on the sector, with BAE Systems (LSE:BAES) down 2.7% by 08:37 GMT, while Babcock (LSE:BAB), Rolls-Royce (LSE:RR.) and QinetiQ (LSE:QQ.) each fell by around 1%.

    The European Commission is currently assessing a new round of SAFE funding as Europe looks to accelerate defence spending amid rising tensions linked to Russia and growing uncertainty over long-term US security commitments under President Donald Trump. The original €150 billion SAFE scheme enables the EU to raise funds in capital markets and lend them to member states over long maturities to finance defence projects ranging from ammunition to drones and missile systems.

    The UK had previously explored joining the initial SAFE programme, but talks collapsed in November after London declined to make a financial contribution, undermining efforts to reset post-Brexit relations with Brussels. Asked whether the UK would pursue a revised SAFE structure, Starmer stressed the need for Europe to move faster on defence.

    “Europe, including the UK, needs to do more on security and defence — that’s an argument I’ve been making for many months now,” he said. “That should require us to look at schemes like SAFE and others to see whether there is a way in which we can work more closely together.”

    “Whether it’s SAFE or other initiatives, it makes sense for Europe in the broadest sense — the EU plus other European countries — to deepen cooperation,” he added.

    While the UK would not be able to apply directly for SAFE loans, joining as a third country could allow British defence companies to bid for EU-backed procurement contracts. Starmer is also seeking to build on recent bilateral defence agreements, with further deals under discussion. Norway has signed a £10 billion agreement for anti-submarine warfare vessels to be built in the UK, while Britain has agreed an £8 billion deal to sell 20 Typhoon fighter jets to Turkey.

    EU Trade Commissioner Maros Sefcovic and other senior EU officials are due in London this week for broader talks covering trade, defence and cooperation.

  • Markets Jittery as Fed Leadership Question Looms, Apple Shines and Shutdown Risk Fades: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Markets Jittery as Fed Leadership Question Looms, Apple Shines and Shutdown Risk Fades: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures moved lower on Friday as investors weighed the growing likelihood that Kevin Warsh could be named the next chair of the Federal Reserve. While strong corporate news from Apple offered some reassurance, a pullback in precious metals and lingering uncertainty around monetary policy kept risk appetite in check. Political nerves also eased slightly after signs emerged that another U.S. government shutdown has been avoided.

    Apple posts standout iPhone growth and upbeat guidance

    Apple (NASDAQ:AAPL) delivered a strong set of results for its fiscal first quarter, comfortably beating market expectations on both revenue and profit. The holiday period proved especially strong, with iPhone sales jumping 23.3% year on year to $85.27bn, marking the fastest quarterly growth in more than four years and the biggest increase since late 2021.

    Demand for the latest iPhone 17 lineup, particularly higher-end Pro models, helped Apple lift its global smartphone market share to about 20% in 2025, up from 18% the year before. Looking ahead, the company forecast revenue growth of up to 16% for the March quarter, driven by resilient iPhone demand, a rebound in China and accelerating momentum in India. Operating expenses are expected to rise modestly to between $18.4bn and $18.7bn.

    Despite the strong outlook, Apple warned that supply constraints remain an issue. “We’re currently constrained. And at this point, it’s difficult to predict when supply and demand will balance,” CEO Tim Cook said, adding, “we’re seeing less flexibility in supply chains than normal, partly because of our increased demand that I just spoke about.” Ongoing shortages of memory chips continue to limit production across the industry.

    U.S. futures slip as caution returns

    Wall Street futures traded lower as investors adopted a more defensive stance ahead of the anticipated Fed announcement. By early trading, S&P 500 futures were down around 0.8%, Nasdaq 100 futures had fallen close to 0.9% and Dow futures were lower by a similar margin.

    The previous session ended mixed, with the S&P 500 and Nasdaq Composite under pressure following post-earnings weakness in Microsoft (NASDAQ:MSFT), while the Dow Jones Industrial Average edged higher. On a weekly basis, the S&P 500 and Nasdaq remain modestly higher, while the Dow is slightly in negative territory.

    Attention is also turning to another heavy earnings day, with results due from Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), American Express (NYSE:AXP), Verizon (NYSE:VZ), Regeneron Pharmaceuticals (NASDAQ:REGN) and Aon (NYSE:AON).

    Kevin Warsh seen as front-runner for Fed role

    President Donald Trump said late Thursday that he will soon announce his nominee to succeed Jerome Powell as Federal Reserve chair, intensifying speculation around former Fed governor Kevin Warsh. “A lot of people think that this is somebody that could have been there a few years ago,” Trump said. “It’s going to be somebody that is very respected, somebody that’s known to everybody in the financial world.”

    Those comments have been widely interpreted as pointing to Warsh, who narrowly missed out on the role in 2017. Reports indicate Warsh visited the White House this week, and multiple media outlets have said the administration is preparing to nominate him. Warsh is generally viewed as supportive of lower interest rates and broadly aligned with Trump’s policy preferences, while still seen as a relatively mainstream choice.

    Trump has repeatedly criticised Powell for not cutting rates more aggressively, sparking concerns about central bank independence. Those concerns were heightened earlier this month when Powell suggested a criminal investigation into a Federal Reserve renovation project was politically motivated.

    Last-minute deal averts government shutdown

    Political risk eased after lawmakers reached a late-night agreement to prevent another federal government shutdown. The White House and Senate Democrats agreed to move forward with a broad package of spending bills, while temporarily separating funding for the Department of Homeland Security and extending it at current levels for two weeks.

    Saturday had been the deadline to pass five spending bills needed to keep large parts of the government running. The compromise is seen as buying time for further negotiations, particularly around immigration enforcement, following renewed scrutiny after the deaths of U.S. citizens Alex Pretti and Renee Good in Minneapolis.

    Gold, silver and oil retreat after sharp rallies

    Commodities pulled back after recent surges. Gold prices fell sharply from record highs after expectations of a less dovish Fed chair boosted the U.S. dollar. Spot gold dropped 3.1% to $5,184.26 an ounce, while April futures fell 4.1% to $5,151.24. Even after the pullback, gold remains up more than 20% so far in January, on track for a sixth consecutive monthly gain and its strongest monthly rise since 1982.

    Other precious metals also cooled after a volatile week, with spot silver sliding 7.3% and platinum down 8.5%. Oil prices eased after a three-day rally, though both Brent and WTI remained on course for weekly gains of more than 5% amid concerns that potential U.S. military action against Iran could disrupt supply. Brent fell to around $68 a barrel, while WTI slipped to about $64.

    Markets are also watching the upcoming OPEC+ meeting on Sunday, where the group is widely expected to keep output unchanged after pausing production increases earlier this year amid concerns about oversupply and weakening global demand.

  • European Markets Advance on Earnings Strength Despite Heightened Geopolitical Risks: DAX, CAC, FTSE100

    European Markets Advance on Earnings Strength Despite Heightened Geopolitical Risks: DAX, CAC, FTSE100

    European equities traded higher on Friday, supported by generally upbeat corporate earnings and resilient economic data, even as geopolitical risks remained firmly in focus. By 09:30 GMT, Germany’s DAX was up around 1%, France’s CAC 40 had added 0.5% and London’s FTSE 100 was 0.2% higher.

    Eurozone economy shows tentative improvement

    Economic data pointed to a gradual recovery across parts of the euro area. France’s economy expanded modestly in the fourth quarter of 2025, easing from the strong rebound seen over the summer but still delivering a better-than-expected performance for the year as a whole. Quarterly GDP growth slowed to 0.2% from 0.5% in the third quarter, while full-year growth reached 0.9%, exceeding the 0.7% assumption used in government budget forecasts.

    In Germany, labour market data highlighted ongoing weakness, with unemployment unchanged in January. On a seasonally adjusted basis, the number of people out of work held steady at 2.976 million, leaving the jobless rate unchanged at 6.3%. Against this backdrop, the European Central Bank is widely expected to leave interest rates unchanged at its meeting next week, with inflation close to target and signs of stabilisation emerging in the broader regional economy.

    Focus turns to geopolitics and the Federal Reserve

    Geopolitical tensions continued to weigh on sentiment. Reports suggested the White House is considering further military action against Iran as additional naval forces move into the region. Separately, U.S. President Donald Trump signed an executive order declaring a national emergency and outlining a framework for potential tariffs on goods from countries that trade oil with Cuba.

    Trump also said late on Thursday that he would announce his nominee for the next Chair of the Federal Reserve later in the session. Media speculation has centred on former Fed Governor Kevin Warsh as the leading candidate.

    Corporate highlights: Adidas, Swatch and Caixabank

    On the corporate front, Adidas (BIT:1ADS) drew attention after reporting record sales for 2025 and announcing a €1bn share buyback programme. Swatch (TG:UHR) said sales rose 4.7% at constant exchange rates in the second half of last year, although the Swiss watch group also reported a sharp decline in full-year profit.

    In the banking sector, CaixaBank (TG:A2RZTQ) posted net profit of €5.89bn for 2025, up 1.8%, delivering a 17.5% return on tangible equity. The bank also cut its non-performing loan ratio to a record low of 2.1% and raised its dividend by 15%.

    In the United States, Apple (NASDAQ:AAPL) comfortably beat profit and revenue expectations for its fiscal first quarter, benefiting from its strongest quarterly iPhone sales growth in more than four years.

    Oil and gold retreat from recent peaks

    Commodity markets pulled back from recent highs. Oil prices eased on Friday, although both benchmarks remained on track for strong weekly gains amid concerns that a potential U.S. strike on Iran could disrupt supplies. Brent crude slipped 0.8% to $69.03 a barrel, while U.S. West Texas Intermediate fell 0.8% to $64.87. Despite the daily decline, both contracts were heading for weekly gains of around 5% and their first monthly rise in six months, with Brent up more than 16% in January and WTI set to gain over 14%.

    Gold prices also dropped sharply, retreating from record levels after news that President Trump is expected to announce his choice for the next Fed Chair later in the day. Kevin Warsh, now seen as the frontrunner, is viewed as less dovish than other candidates, prompting a rebound in the U.S. dollar and pressuring dollar-denominated commodities. Spot gold fell 5.4% to $5,061.59 an ounce, while April gold futures slid 6.4% to $5,024.68. Even so, gold prices remain up more than 20% so far in January, on track for a sixth consecutive monthly gain and their strongest monthly rise since 1982.

  • Meta’s Earnings Surprise Sets an Upbeat Tone for Wall Street Open: Dow Jones, S&P, Nasdaq, Futures

    Meta’s Earnings Surprise Sets an Upbeat Tone for Wall Street Open: Dow Jones, S&P, Nasdaq, Futures

    U.S. equity futures pointed modestly higher early Thursday, signaling a positive start to trading after the major indices finished the prior session close to flat.

    Early strength looked set to be driven by a strong earnings reaction from Meta Platforms (NASDAQ:META), with the Facebook owner jumping more than 9% in premarket dealings. The rally followed better-than-expected fourth-quarter results and first-quarter revenue guidance that topped Wall Street forecasts.

    Other large-cap technology names also added support. Shares of IBM Corp. (NYSE:IBM) advanced sharply before the bell after the company delivered fourth-quarter results that beat expectations on both revenue and profit. Tesla (NASDAQ:TSLA) also appeared poised to open higher after reporting quarterly numbers that exceeded analyst estimates.

    Offsetting some of the optimism was weakness in Microsoft (NASDAQ:MSFT), whose shares slid more than 6% in premarket trading. The decline came after the company flagged slower growth in its cloud business during the fiscal second quarter and issued softer-than-expected guidance for third-quarter operating margins.

    During Wednesday’s session, the main U.S. benchmarks struggled to hold early gains and spent much of the day drifting around unchanged levels, ultimately closing narrowly mixed. The S&P 500 edged down by less than a point to finish at 6,978.03, while the Dow Jones Industrial Average added 12 points to 49,015.60. The Nasdaq Composite outperformed slightly, rising 0.2% to 23,857.45.

    Markets remained unsettled after the Federal Reserve delivered its widely anticipated decision to keep interest rates unchanged. Policymakers maintained the federal funds target range at 3.50% to 3.75% following three straight quarter-point cuts.

    The decision was not unanimous, however, with Governors Stephen Miran and Christopher Waller favoring another 25-basis-point reduction. The Fed cited heightened uncertainty around the economic outlook and reiterated its focus on managing risks to both employment and inflation.

    “While not a unanimous vote, there does seem to be a clear and consistent majority in favor of a pause in this rate-cutting cycle, a pause that likely continues unless or until the job market weakens further,” said Mortgage Bankers Association SVP and Chief Economist Mike Fratantoni.

    He added, “With inflation remaining elevated, the FOMC majority does not seem in any rush to make further rate moves.”

    According to expectations tracked by CME Group, investors now anticipate that rates will remain on hold at least until after Fed Chair Jerome Powell steps down in May.

    With the policy decision largely priced in, investor focus shifted to earnings from major technology companies released after the close. Despite uneven trading in the broader market, gold-related stocks surged as bullion prices continued to climb, pushing the NYSE Arca Gold Bugs Index to a fresh record closing high.

    Strength was also evident in computer hardware shares, with the NYSE Arca Computer Hardware Index rising 2.6% to a new closing peak, helped by a sharp jump in Seagate Technology after the company reported better-than-expected fiscal second-quarter results.

    Semiconductor and networking stocks also advanced, while oil services, pharmaceutical and biotechnology shares were among the session’s notable decliners.

  • European Shares Advance as Earnings Optimism Lifts Sentiment: DAX, CAC, FTSE100

    European Shares Advance as Earnings Optimism Lifts Sentiment: DAX, CAC, FTSE100

    European equities traded mostly higher on Thursday, with a wave of stronger-than-expected corporate results helping to counter lingering worries around a weaker dollar and rising geopolitical tensions between the U.S. and Iran.

    Markets were also digesting the Federal Reserve’s decision to keep interest rates unchanged, alongside a batch of U.S. technology earnings released after Wednesday’s close.

    Eurozone government bond yields were little changed, as investors weighed concerns that euro strength could eventually pressure the European Central Bank toward rate cuts.

    The pan-European Stoxx 600 index rose 0.7%, rebounding from a 0.8% decline the previous session. The UK’s FTSE 100 climbed 0.9% and France’s CAC 40 gained 0.8%, while Germany’s DAX underperformed, sliding 1.0%.

    In London, EasyJet (LSE:EZJ) jumped sharply after reaffirming its full-year guidance. Antofagasta (LSE:ANTO) also rallied, even after reporting a relatively modest 1.6% decline in copper output for 2025.

    Banking stocks saw selective strength, with ING Groep (LSE:ING) advancing after the lender lifted its FY27 outlook, supported by a 22% jump in fourth-quarter net profit and a 7.2% increase in revenue.

    In the technology space, STMicroelectronics (NYSE:STM) surged after guiding first-quarter revenue slightly above market expectations. Remy Cointreau (EU:RCO) also climbed, as third-quarter organic sales growth came in ahead of consensus.

    Industrial names added to gains, with ABB (BIT:1ABB) rising after closing the year with stronger orders and record quarterly revenue.

    Not all stocks participated in the rally. Hennes & Mauritz (BIT:1HMB) fell after warning of sluggish winter sales. Deutsche Bank (TG:DBK) also moved lower despite delivering its highest annual profit since 2007.

    Meanwhile, SAP (TG:SAP) slumped after missing fourth-quarter earnings expectations, and Nokia (NYSE:NOK) dropped after issuing a slightly weaker-than-expected outlook for 2026.

    Overall, upbeat earnings provided support for European markets, even as macroeconomic and geopolitical uncertainties continued to shape investor positioning.

  • Fed Keeps Rates on Hold as Tech Earnings and AI Spending Shape Market Moves: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Fed Keeps Rates on Hold as Tech Earnings and AI Spending Shape Market Moves: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures edged higher as investors reacted to the Federal Reserve’s latest policy decision alongside a wave of high-profile technology earnings. The central bank left interest rates unchanged, emphasizing the underlying strength of the U.S. economy, while major tech groups including Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) reaffirmed their commitment to heavy investment in artificial intelligence. Meanwhile, Tesla (NASDAQ:TSLA) unveiled plans to invest in Elon Musk’s private AI venture, and gold prices pushed to fresh record highs.

    Futures inch higher

    U.S. stock futures were mostly positive early Thursday as markets absorbed the Fed’s decision and results from several mega-cap technology names. By 03:02 ET, Dow futures were broadly flat, S&P 500 futures were up 13 points, or 0.2%, and Nasdaq 100 futures had gained 85 points, or 0.3%.

    On Wednesday, the S&P 500 broke above the 7,000 level for the first time, driven by continued enthusiasm around artificial intelligence and expectations that interest rate cuts could follow later in the year.

    “[T]he big focus was on tech, as companies in the industry nearly across the board reported robust results and issued favorable guidance,” analysts at Vital Knowledge said in a note.

    Supported by relative economic resilience despite ongoing geopolitical and trade-related uncertainty, the S&P 500 has added roughly 1,000 points since November 2024.

    Fed stands pat

    The Federal Reserve kept its benchmark interest rate unchanged in a 3.5%–3.75% range, as widely expected, pointing to solid economic conditions and signs of stabilization in the labor market. Most members of the rate-setting committee favored holding policy steady, although Stephen Miran and Christopher Waller both supported a quarter-point reduction.

    At his post-meeting press conference, Fed Chair Jerome Powell avoided further comment on a Justice Department investigation and instead highlighted the strength of the U.S. economy. He suggested that the inflationary impact of President Trump’s tariffs could ease over time, adding that while a rate increase was not ruled out, it “isn’t anybody’s base case right now.”

    Analysts at ING said the Fed’s more upbeat assessment of growth suggests that the easing cycle seen last year may be nearing its conclusion. Even so, the U.S. dollar continued to weaken against a basket of major currencies.

    Meta and Microsoft underline AI ambitions

    Artificial intelligence spending once again dominated the narrative from Meta and Microsoft, with both companies signaling that large-scale investment in data centers, chips and related infrastructure will continue. Investors, however, remain focused on when these outlays will translate into more visible returns.

    Meta said capital expenditure could rise to as much as $135bn this year, far exceeding expectations and nearly doubling its 2025 spend. The announcement coincided with record fourth-quarter revenue, helping lift Meta shares in extended trading.

    Microsoft’s shares moved lower after the company flagged higher-than-expected AI-related costs and slightly softer growth in its Azure cloud business compared with the previous quarter. Attention now turns to further tech earnings, including results from Apple later Thursday.

    Tesla backs xAI

    Tesla also delivered better-than-expected quarterly results, reinforcing its strategic pivot toward artificial intelligence. Shares rose 2.7% after hours after the company reported adjusted earnings of $0.50 per share on revenue of $24.9bn, beating consensus forecasts.

    A key highlight was the decision to invest $2bn in xAI, Elon Musk’s private AI startup. Management described 2025 as a milestone year, marking the company’s “transition from a hardware-centric business to a physical AI company.”

    While automotive revenue declined 11% year on year, Tesla’s energy storage segment posted record deployments of 14.2 gigawatt-hours. Facing intensifying competition and having fallen behind China’s BYD in global EV rankings, Tesla is increasingly positioning AI and robotics as core long-term growth drivers.

    Gold extends record rally

    Gold prices surged to another all-time high near $5,600 an ounce, extending a strong rally amid reports that President Trump may be considering renewed military action against Iran. Silver also reached a fresh record above $119 an ounce, reflecting strong demand for safe-haven assets.

    The rally in precious metals has been fueled by heightened geopolitical tensions, a weaker dollar and policy uncertainty, with copper also touching record levels.

    “Gold is no longer just a crisis hedge or an inflation hedge; it is increasingly viewed as a neutral, and a reliable store of value asset that also provides diversification across a wider range of macro regimes,” OCBC analysts said in a note.

    “This helps explain why pullbacks have tended to be shallow and well-supported,” they added.

  • European Equities Mixed After Fed Hold as Earnings Season Intensifies: DAX, CAC, FTSE100

    European Equities Mixed After Fed Hold as Earnings Season Intensifies: DAX, CAC, FTSE100

    European stock markets traded without a clear direction on Thursday as investors absorbed a heavy flow of corporate earnings alongside the U.S. Federal Reserve’s decision to leave interest rates unchanged.

    By 08:10 GMT, Germany’s DAX was down 0.7%, while France’s CAC 40 advanced 0.9% and the UK’s FTSE 100 gained 0.6%.

    Fed pauses again

    The U.S. Federal Reserve kept its benchmark interest rate unchanged at the end of its latest policy meeting on Wednesday, extending a pause after a run of rate cuts late last year. Fed Chair Jerome Powell said policymakers needed more evidence that inflation was moving sustainably toward the 2% target before easing policy further, while stressing that economic growth remained resilient.

    ““Chair Powell’s decision to hold rates steady underscores a Federal Reserve that is increasingly cautious, internally divided, and intent on preserving credibility amid extraordinary political noise,” said David Millar, CIO at Catalyst Funds.

    Pricing from CME’s FedWatch tool indicates markets expect rates to remain on hold in the near term, but still anticipate two further cuts later this year. In Europe, attention later in the session turns to January eurozone consumer confidence and business sentiment data, which are expected to show some improvement.

    Earnings take centre stage

    Corporate results were firmly in focus as the reporting season gathered pace across Europe.

    Deutsche Bank (TG:DBK) posted a record pretax profit for the fourth quarter of 2025, driven by strength in its global investment banking activities, although the result was overshadowed by news of a police investigation linked to alleged money laundering.

    Nokia (BIT:1NOKIA) reported a sharp drop in fourth-quarter operating margin to 8.8% from 14.4% a year earlier, weighed down by €299m in restructuring charges and integration costs following its Infinera acquisition. The group also warned that first-quarter 2026 net sales would “decline somewhat more than normal seasonality.”

    Nordea Bank (BIT:1NDA) exceeded expectations at the net profit level for the fourth quarter, helped by stronger-than-anticipated net interest income and fee generation.

    ING Group (LSE:ING) reported a record profit for 2025 and said it plans to continue returning around half of its capital generation to shareholders, outlining an outlook that points to stable income and returns through 2027.

    ABB (BIT:1ABB) delivered a strong fourth quarter and issued upbeat guidance for early 2026, rounding off a record year marked by robust orders and margin expansion.

    Roche (TG:RHO) said net profit jumped 58% in 2025 and forecast further growth in sales and earnings in 2026, supported by demand for newer medicines that offset pressure from patent expiries, currency effects and pricing reforms in China.

    Sanofi (EU:SAN) said it expects sales to rise by a high single-digit percentage in 2026, underpinned by continued demand for its blockbuster asthma treatment Dupixent and newer drugs.

    STMicroelectronics (NYSE:STM) posted a quarterly loss and warned of a sequential decline in first-quarter revenue, citing restructuring costs and weaker automotive demand.

    Investors were also digesting major U.S. tech results. Meta Platforms (NASDAQ:META) shares jumped in after-hours trading after the company issued an upbeat revenue outlook tied to AI-driven advertising tools. Tesla (NASDAQ:TSLA) also beat expectations, offering support to growth stocks, while Microsoft (NASDAQ:MSFT) slipped as rising AI-related costs tempered sentiment.

    Oil rallies on Iran risk

    Oil prices surged on Thursday amid growing concern that the U.S. could carry out military action against Iran, potentially threatening supplies from the Middle East. Brent crude rose 1.3% to $68.26 a barrel, while U.S. West Texas Intermediate gained 1.5% to $64.18.

    Both benchmarks are up around 5% since Monday and are trading at their highest levels since late September. President Trump has stepped up pressure on Iran over its nuclear programme, with reports suggesting he is considering new military action as a U.S. naval group arrives in the region. Iran is the fourth-largest producer in OPEC, pumping about 3.2 million barrels per day.

    Oil markets have also been supported this week by supply disruptions in the U.S. caused by severe winter storms, with estimates indicating that at least 2 million barrels per day of production has been temporarily shut in.

  • Semiconductor Stocks Set to Power Early Wall Street Gains: Dow Jones, S&P, Nasdaq, Futures

    Semiconductor Stocks Set to Power Early Wall Street Gains: Dow Jones, S&P, Nasdaq, Futures

    U.S. stock futures signalled a stronger open on Wednesday, pointing to a continuation of the rally seen over the past two sessions, with semiconductor shares once again expected to lead the market higher.

    Chipmakers and related names were among Tuesday’s standout performers, and early trading indications suggested that momentum would carry into midweek. U.S.-listed shares of ASML (NASDAQ:ASML) climbed about 5% in premarket trading after the Dutch chip-equipment supplier reported robust fourth-quarter results and struck an upbeat tone on its outlook for 2026.

    The positive mood extended across global markets, with South Korea’s SK Hynix surging in Asian trading after delivering better-than-expected quarterly results and posting a record full-year profit for 2025.

    The sector also drew support from a Reuters report saying Chinese authorities have approved purchases of Nvidia’s (NASDAQ:NVDA) H200 artificial intelligence chips by several of the country’s largest technology groups. Nvidia shares rose roughly 1.6% ahead of the opening bell. According to people familiar with the matter, Alibaba (NYSE:BABA), ByteDance and Tencent have been cleared to buy more than 400,000 H200 chips combined.

    Despite the upbeat start, overall trading could remain cautious as investors await the Federal Reserve’s monetary policy decision later in the day. While the central bank is widely expected to leave interest rates unchanged, markets will be watching closely for any signals from policymakers on the future direction of rates.

    Attention will also turn to earnings after the close, with heavyweight technology companies Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA) all due to report.

    On Tuesday, Wall Street closed mixed. The Nasdaq and S&P 500 extended their gains, while the Dow Jones Industrial Average moved sharply lower. The Nasdaq rose 215.7 points, or 0.9%, to finish near a three-month high, and the S&P 500 added 0.4% to close at a record level. In contrast, the Dow fell nearly 409 points, or 0.8%, despite recovering from steeper losses earlier in the session.

    Optimism around upcoming tech earnings helped underpin broader market strength. Shares of Microsoft rose 2.2%, Apple gained 1.1%, and Meta edged modestly higher. Positive results from General Motors (NYSE:GM) and UPS (NYSE:UPS) also lifted sentiment.

    By contrast, UnitedHealth (NYSE:UNH) weighed heavily on the Dow, with its shares plunging nearly 20% after the insurer issued disappointing revenue guidance despite slightly beating quarterly earnings expectations. The broader insurance sector was further pressured by a Trump administration proposal that would keep Medicare Advantage reimbursement rates largely flat.

    Economic data also drew attention, after the Conference Board reported a sharper-than-expected drop in U.S. consumer confidence in January. The index fell to 84.5 from an upwardly revised 94.2 in December, defying forecasts for an increase and marking its lowest level since May 2014.

    Sector performance reflected these crosscurrents. Semiconductor stocks jumped, pushing the Philadelphia Semiconductor Index to a fresh record close. Computer hardware and networking shares also advanced, helping lift the tech-heavy Nasdaq. Outside of technology, oil service stocks rose alongside crude prices, while healthcare, airline and housing stocks faced notable selling pressure.

  • European Stocks Ease After Two-Day Rally: DAX, CAC, FTSE100

    European Stocks Ease After Two-Day Rally: DAX, CAC, FTSE100

    European equities moved mostly lower on Wednesday, giving back some recent gains after two positive sessions, as investors adopted a cautious stance ahead of the U.S. Federal Reserve’s policy decision and earnings updates from major technology groups.

    Market sentiment was also dented by comments from U.S. President Donald Trump on the dollar, which were taken as a signal of weaker confidence in the U.S. economic outlook. The greenback hovered near four-year lows and was on course for its sharpest weekly drop since last April after Trump suggested he was comfortable with the currency’s recent decline.

    By mid-session, France’s CAC 40 was down about 1.5%, Germany’s DAX had slipped 0.6%, and the UK’s FTSE 100 was lower by roughly 0.5%.

    Despite the broader weakness, some stocks bucked the trend. Semiconductor equipment group ASML Holding (EU:ASML) surged after reporting fourth-quarter orders that came in well above analyst expectations.

    Germany’s chemicals producer Wacker Chemie (TG:WCH) also climbed sharply after announcing a €300 million cost-cutting programme.

    In the UK, pet care retailer Pets at Home (LSE:PETS) posted strong gains after reaffirming its full-year profit outlook.

    Meanwhile, Dutch telecoms group KPN (EU:KPN) moved notably lower after forecasting year-on-year service revenue growth of just 2% to 2.5% for 2026, a cautious outlook that weighed on the shares.

  • Markets Brace for Fed Verdict and Earnings Deluge as Volatility Builds: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Markets Brace for Fed Verdict and Earnings Deluge as Volatility Builds: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. stock futures edged higher early Wednesday as investors positioned ahead of a pivotal session dominated by the Federal Reserve’s interest-rate decision and a heavy stream of corporate earnings. The Fed is widely expected to hold rates steady, while results from several mega-cap technology companies are due after the U.S. market close. Elsewhere, gold pushed to another record high and reports said China has approved initial purchases of Nvidia’s H200 artificial intelligence chips.

    U.S. futures point higher

    Futures tied to the main U.S. equity benchmarks traded modestly in the green, reflecting cautious optimism before the day’s catalysts.

    At 02:49 ET, Dow futures were up 37 points, or 0.1%, S&P 500 futures rose 28 points, or 0.4%, and Nasdaq 100 futures jumped 249 points, or 1.0%.

    Wall Street finished Tuesday’s session mixed as investors weighed a large batch of earnings reports. Shares of UnitedHealth (NYSE:UNH) slid after the insurer flagged lower expected revenue in 2026 following a federal proposal that disappointed expectations for Medicare Advantage premium increases. The weakness spilled over into the broader healthcare sector, with CVS Health (NYSE:CVS) and Humana (NYSE:HUM) posting double-digit declines.

    The Dow Jones Industrial Average closed down 0.8%, while relative strength in technology and automotive stocks helped buoy the S&P 500 and Nasdaq Composite.

    Beyond earnings, markets also kept an eye on the risk of a partial U.S. government shutdown amid political tensions, as well as renewed tariff threats from President Donald Trump. Adding to concerns, U.S. consumer confidence fell in January to its lowest level in 12 years, according to the Conference Board, underscoring household unease despite a resilient economy.

    Fed decision takes center stage

    Against this backdrop, the Federal Reserve is expected to leave interest rates unchanged at the conclusion of its meeting later today.

    After cutting rates last year to support a cooling labor market—bringing borrowing costs into a 3.5% to 3.75% range—the central bank now appears in wait-and-see mode. With inflation still above the Fed’s 2% target and layoffs remaining limited, policymakers are seen holding steady for now.

    Attention will instead turn to Chair Jerome Powell’s comments for clues on the timing of future rate cuts, especially after December’s meeting highlighted deep divisions among officials. Markets currently do not expect the next rate reduction until June.

    Investors are also closely watching developments around the Fed’s leadership. Powell’s term as chair ends in May, and President Trump has signaled he will soon name a successor, raising questions about the future direction and independence of U.S. monetary policy.

    Earnings season accelerates

    The flow of corporate results is set to intensify, with particular focus on major technology names.

    After the closing bell, Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT) and Tesla (NASDAQ:TSLA) are scheduled to report, with their outlooks likely to offer fresh insight into the durability of the artificial intelligence investment boom that has powered equity markets.

    Tech giants continue to pour capital into AI infrastructure, boosting demand for advanced semiconductors and data centers. Supporting expectations that this trend could persist into 2026, Europe’s largest listed company, ASML (NASDAQ:ASML), reported stronger-than-expected fourth-quarter bookings and signaled further order growth.

    Earlier in the day, investors will also digest earnings from AT&T (NYSE:T), Starbucks (NASDAQ:SBUX) and GE Vernova (NYSE:GEV).

    Gold hits fresh highs

    Gold prices climbed above $5,200 an ounce to a new all-time high, driven by strong safe-haven demand and continued weakness in the U.S. dollar.

    Other precious metals remained elevated, with silver and platinum hovering near recent peaks. Heightened uncertainty ahead of the Fed decision and broader geopolitical tensions have helped sustain demand for defensive assets.

    The metal is up around 20% so far in 2026, building on strong gains last year as investors seek protection amid policy and geopolitical risks.

    China clears Nvidia H200 chip purchases – reports

    China has approved the purchase of an initial batch of Nvidia’s (NASDAQ:NVDA) H200 AI chips, according to media reports.

    Authorities have reportedly given the green light to leading technology groups including ByteDance, Alibaba and Tencent to buy more than 400,000 H200 chips in total, as Beijing seeks to advance its position in the global AI race while managing domestic semiconductor priorities.

    The first approvals could be worth around $10 billion, with additional companies still awaiting authorization. Nvidia shares rose more than 1% in extended trading following the reports.