U.S. equity futures edged higher, with the Nasdaq 100 gaining traction after Alibaba Group Holding Ltd. posted strong earnings, fueling optimism about artificial intelligence and tech sector growth. Nasdaq 100 futures climbed about 0.3%, while U.S.-listed Chinese stocks saw premarket gains. However, weak guidance from Block Inc., Akamai Technologies Inc., and Rivian Automotive Inc. limited broader market gains. S&P 500 futures remained steady, reflecting cautious investor sentiment.
Global markets continue to show divergence, with European and Asian equities outperforming their U.S. counterparts this year. Bank of America strategist Michael Hartnett maintains a preference for global stocks over U.S. equities, pointing to attractive opportunities in Germany, China, Japan, and South Korea as business activity improves. JPMorgan Chase & Co. analysts note that U.S. companies’ profit outlooks for 2025 remain relatively subdued.
In Europe, the Stoxx 600 Index gained 0.6%, heading toward its ninth consecutive weekly increase. European equities also saw inflows of approximately $4 billion in the week ending February 19, the highest level since February 2022, according to Bank of America’s analysis of EPFR Global data. Investor confidence in Europe is partly driven by resilient corporate earnings and optimism regarding peace negotiations in Ukraine.
Chinese technology stocks surged to their highest level since 2022, with Alibaba jumping 14%, further boosting sentiment. Meanwhile, traders are closely monitoring Germany’s weekend elections, as a win for the Conservative front-runner could enable economic reforms and relaxed borrowing policies, potentially strengthening the European economy.
The euro weakened by 0.3% against the U.S. dollar as recent purchasing manager data revealed slow business activity growth in the region, reinforcing fears of economic stagnation. The Bloomberg Dollar Spot Index rose 0.3%, while the British pound declined 0.2% to $1.2643. The Japanese yen fell 0.5%, trading at 150.42 per dollar.
Bitcoin and Ethereum continued their positive momentum, with Bitcoin rising 0.7% to $98,825.78 and Ether surging 2.7% to $2,801.34.
Gold remained in demand, heading for its eighth consecutive weekly gain as geopolitical uncertainties and trade tensions drove investors toward safe-haven assets. Spot gold fell slightly by 0.1% to $2,934.65 an ounce.
Oil markets saw some volatility, with West Texas Intermediate crude declining 0.9% to $71.81 per barrel. Meanwhile, bond yields showed mixed movements, as the 10-year U.S. Treasury yield fell by two basis points to 4.49%, Germany’s 10-year yield declined five basis points to 2.49%, and the U.K.’s 10-year yield remained steady at 4.60%.
As global markets navigate mixed signals, investors will be closely watching upcoming U.S. purchasing manager index (PMI) data, with expectations of a composite reading of 53.2, slightly below January’s figure. The Federal Reserve’s policy trajectory and corporate earnings updates will continue to influence market sentiment in the coming weeks.