Stocks took a breather on Thursday after gains since President Donald Trump’s inauguration had taken European and US benchmarks close to record highs.
The Stoxx Europe 600 index (^STOXX) was little changed after coming within a hair’s breadth of an all-time high on Wednesday. Technology shares fell more than 1%, giving up most of the previous day’s advance. Puma SE (PUM.DE) plunged after the German sportswear maker missed earnings estimates.
US equity futures dipped after the S&P 500 (^GSPC) also closed on the brink of record peak, propelled by optimism over artificial intelligence and a batch of earnings from corporate heavyweights. Contracts on the Nasdaq 100 (NQ=F) slipped 0.4% and those on the S&P 500 (ES=F) were down 0.2%.
Markets are still digesting the impact of Trump’s first few days in office, which have sent mixed signals to investors. While his move to boost AI spending buoyed tech megacaps on Wednesday, the risk of tariffs on major trading partners still weighs on sentiment. He has threatened levies on Europe and China, though he has so far held off from implementing any measures.
“We continue to expect near-term volatility as markets react to incoming Trump headlines, and see negative impact on targeted regions if the administration follows through with the proposed tariffs,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “But we also believe US equities have room to grind higher as growth momentum continues.”
Yields on 10 year Treasuries (^TNX) were little changed at around 4.60%. A gauge of the dollar was steady.
Also in focus on Thursday will be US jobless-claims data, as well as Trump’s address at the World Economic Forum in Davos and fourth-quarter earnings reports from companies including General Electric Co., American Airlines Group Inc. and Texas Instruments Inc.
Meanwhile, Asian stocks advanced after Chinese officials reassured investors of the government’s commitment to supporting the market and boosting share prices. The MSCI Asia Pacific index climbed for the fourth session, set for the longest winning streak in nearly a month, as gains in mainland Chinese shares pushed up the benchmark CSI 300 Index by as much as 1.8% before trimming some of its advance.
