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Bloomberg <\/p>\n Bloomberg <\/p>\n
(Bloomberg) — Stocks and bonds posted small moves amid muted holiday trading after Friday\u2019s benign US inflation data reinforced expectations that the Federal Reserve will cut interest rates this year.<\/p>\n
Futures on the S&P 500 were flat and Europe\u2019s Stoxx 600 index gained 0.1%. NatWest Group Plc climbed 4.8% after Citigroup Inc. raised its price target on the UK lender. German bunds and Treasury futures were steady after US yields touched the lowest since December on Friday.<\/p>\n
Most Read from Bloomberg<\/p>\n
With the US observing the Presidents\u2019 Day holiday and mainland China\u2019s markets closed for Lunar New Year holidays, trading volumes were thin. Still, the path of US interest rates remains in focus following the slower-than-expected US inflation print as traders fully price a Fed cut in July and the strong chance of a move in June.<\/p>\n
\u201cThe backdrop for equities is positive post CPI,\u201d said Andrea Gabellone, head of global equities at KBC Securities. At the same time, there could be \u201cmore dispersion ahead as sentiment around key AI-exposed sectors is still very critical,\u201d he added.<\/p>\n
WATCH: JPMorgan Private Bank\u2019s Nataliia Lipikhina discusses equity market sector rotation and why she likes industrials, health care and financials.Source: Bloomberg <\/p>\n
That sentiment was echoed by other strategists seeking to distinguish between AI losers and winners.<\/p>\n
A JPMorgan Chase & Co. team led by Mislav Matejka urged caution on stocks at risk of AI-driven \u201ccannibalization,\u201d including software, business services and media companies.<\/p>\n
Futures on the tech-heavy Nasdaq 100 were down 0.2%.<\/p>\n
Firms are developing tools to capitalize on the divergence. Goldman Sachs Group Inc. launched a new basket of software stocks that goes long firms that will benefit from AI adoption, while shorting the companies whose workflows could be replaced. <\/p>\n
<\/p>\n
\u00a0<\/p>\n
With AI disruption rippling through markets, a lot will come down to earnings resilience, in particular in the US.<\/p>\n
\u201cWhen you look at the current earnings season, the companies are showing 13% of growth,\u201d Nataliia Lipikhina, head of EMEA equity strategy at JPMorgan, told Bloomberg TV. \u201cOverall, this is the reason why we continue to be positive on the S&P.\u201d<\/p>\n
Later this week, traders will be watching for ADP private payrolls numbers on Tuesday and the minutes from the Fed\u2019s January meeting on Wednesday for a fresh read on the economy.<\/p>\n
What Bloomberg strategists say…<\/p>\n
Global equities are likely to retreat as the fracturing AI outlook drags down megatechs and sectors vulnerable to disruptions. Stock declines will help bonds extend their rallies.<\/p>\n
\u2014 Garfield Reynolds, MLIV Team Leader. For full analysis, click here.<\/p>\n
Elsewhere, gold dipped below $5,000 an ounce, as traders booked profits from a gain in the previous session.<\/p>\n
The dollar was steady. Bitcoin fell 1.5% to $68,505 after posting its fourth consecutive weekly loss, with the cryptocurrency struggling to find clear direction as a weekend rally fizzled.<\/p>\n
Corporate Highlights:<\/p>\n
Warner Bros Discovery Inc. is considering reopening sale talks with rival Hollywood studio Paramount Skydance Corp. after receiving its hostile suitor\u2019s most recent amended offer, people with knowledge of the matter said.<\/p>\n
Alibaba Group Holding Ltd. unveiled a major upgrade of its flagship AI model, accelerating a race with a panoply of startups and sectoral leaders aiming to get in ahead of Chinese sensation DeepSeek\u2019s next big platform.<\/p>\n
NatWest rose the most since October. Citi analyst Andrew Coombs raised his price target on the UK bank to a Street-high and upped his estimates for pretax profit and earnings-per-share to account for the acquisition of wealth manager Evelyn Partners and higher net interest income.<\/p>\n
Orsted A\/S advanced as much as 4% after an upgrade from analysts at Kepler Cheuvreux, who were positive on the wind turbines operator\u2019s outlook despite ongoing uncertainty for the industry in the US.<\/p>\n
Volkswagen plans to cut costs by 20% by the end of 2028, Manager Magazin reported, without saying where it got the information.<\/p>\n
A group led by Macquarie Asset Management will buy Qube Holdings Ltd. in a deal worth around A$11.7 billion ($8.3 billion).<\/p>\n
Some of the main moves in markets:<\/p>\n
Stocks<\/p>\n
S&P 500 futures were little changed as of 4:49 p.m. New York time<\/p>\n
Futures on the Dow Jones Industrial Average were little changed<\/p>\n
The MSCI World Index was little changed<\/p>\n
Nasdaq 100 futures fell 0.2%<\/p>\n
S&P\/BMV IPC fell 0.2%<\/p>\n
Currencies<\/p>\n
The Bloomberg Dollar Spot Index rose 0.1%, more than any closing gain since Feb. 5, 2026<\/p>\n
The euro weakened 0.1%,falling for the fifth straight day, the longest losing streak since Nov. 21, 2025<\/p>\n
The British pound fell 0.2% to $1.3627<\/p>\n
The Japanese yen slipped 0.6%, more than any closing loss since Feb. 4, 2026<\/p>\n
The offshore yuan rose 0.2% to the highest in almost three years<\/p>\n
The Mexican peso was little changed at 17.1648<\/p>\n
Cryptocurrencies<\/p>\n
Bitcoin fell 0.5% to $68,504.79<\/p>\n
Ether rose 1.6% to $1,989.27<\/p>\n
Bonds<\/p>\n
The yield on 10-year Treasuries was little changed at 4.05%<\/p>\n
Germany\u2019s 10-year yield was little changed at 2.75%<\/p>\n
Britain\u2019s 10-year yield declined two basis points, falling for the fifth straight day, the longest losing streak since Jan. 12, 2026<\/p>\n
Commodities<\/p>\n
West Texas Intermediate crude rose 1.3%, more than any closing gain since Feb. 4, 2026<\/p>\n
Spot gold fell 1% to $4,992.08 an ounce<\/p>\n
This story was produced with the assistance of Bloomberg Automation.<\/p>\n
–With assistance from Richard Henderson and Sebastian Boyd.<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92026 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"Bloomberg (Bloomberg) — Stocks and bonds posted small moves amid muted holiday trading after Friday\u2019s benign US inflation…\n","protected":false},"author":2,"featured_media":479395,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[194122,4536,45,49,48,4492,2071,84262,194120,194119,56111,19093,194121],"class_list":{"0":"post-479394","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-andrea-gabellone","9":"tag-bloomberg","10":"tag-business","11":"tag-ca","12":"tag-canada","13":"tag-citigroup-inc","14":"tag-federal-reserve","15":"tag-global-equities","16":"tag-nataliia-lipikhina","17":"tag-natwest-group","18":"tag-price-target","19":"tag-stocks-and-bonds","20":"tag-treasury-futures"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/479394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=479394"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/479394\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/479395"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=479394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=479394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=479394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}